Daido Metal (7245) Q2 2025 earnings summary

Executive summary

• Net sales rose 8.0% year-over-year to ¥68,432 million for the second quarter of FY2024.

• Operating profit increased 22.5% year-over-year to ¥2,708 million, with margin up to 4.0%.

• Ordinary profit grew 18.4% year-over-year to ¥2,620 million.

• Profit attributable to owners of parent declined 14.1% year-over-year to ¥528 million.

• Comprehensive income increased to ¥5,309 million, up from ¥4,918 million a year earlier.

Financial highlights

• Net interest-bearing debt decreased by 7.4% year-over-year to ¥34,573 million.

• Gross profit rose to ¥16,320 million from ¥14,469 million year-over-year.

• Net assets to total assets ratio/capital adequacy ratio improved to 36.9%.

• Cash and cash equivalents at period end were ¥22,886 million, down from ¥24,586 million at the start of the period.

• Operating profit increase mainly driven by higher sales, favorable exchange rates, and cost improvements, offset by higher labor costs.

Outlook and guidance

• FY2024 full-year net sales forecast at ¥131,000 million, up 1.8% year-over-year.

• Operating profit forecast at ¥6,000 million, with slight year-over-year change.

• Ordinary profit expected at ¥5,700 million, down 2.2% year-over-year.

• Profit attributable to owners of parent projected at ¥2,500 million, down 2.7% year-over-year.

• No changes to previously announced FY2024 forecast.