CTI Engineering Co (9621) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 sales reached a record high of 30,110 million yen, up 3.2% YoY, while orders received decreased 1.9% YoY and profits declined due to higher costs and extraordinary losses.

• Operating income and net income attributable to owners decreased YoY but were in line with internal plans.

• The business environment remains mixed, with domestic resilience and stable disaster prevention spending, but overseas operations, especially in the UK, face uncertainty.

• The company is actively pursuing business portfolio transformation under the Mid-Term Management Plan 2027.

Financial highlights

• Orders received: JPY 24.0 billion, down 1.9% YoY; sales: JPY 30.1 billion, up 3.2% YoY.

• Operating income: JPY 5.9 billion, down 4.1% YoY; ordinary profit: JPY 5,837 million, down 4.4% YoY.

• Net income attributable to owners: JPY 3.9 billion, down 12.3% YoY; net income per share: 140.18 yen.

• Comprehensive income declined 30.9% YoY to 3,584 million yen.

• Operating income margin: 19.5%, down 1.4pt YoY.

Outlook and guidance

• All Q1 figures are in line with the annual plan, with progress ratios of 24.0% for orders, 30.1% for sales, 58.6% for operating income, and 56.4% for net income.

• FY2025 plan targets JPY 100.0 billion in both orders and sales, JPY 10.0 billion operating income, and JPY 6.9 billion net income.

• No revision to the previously announced forecast.

• The company aims to increase sales and income as a first step toward the Mid-Term Management Plan 2027.