Daido Metal (7245) Q3 2026 earnings summary

Executive summary

• Net sales increased 4.0% year-over-year to JPY 103,394 million for the third quarter of FY2025, with operating profit up 27.7% to JPY 5,867 million and net profit attributable to owners of parent up 67.1% to JPY 2,458 million.

• Comprehensive income surged 96.5% year-over-year to JPY 5,335 million, reflecting strong operational and financial performance.

• Profit growth was driven by price increases, sales growth, cost improvements, and favorable exchange rates, offsetting higher labor costs, tariffs, and depreciation.

Financial highlights

• Operating margin improved by 1.1 points to 5.7% year-over-year; net profit margin rose by 0.9 points to 2.4%.

• Gross profit increased to JPY 25,418 million from JPY 24,285 million year-over-year, while operating profit rose to JPY 5,867 million from JPY 4,595 million.

• Ordinary profit reached JPY 5,126 million, up from JPY 4,419 million, and basic earnings per share improved to JPY 52.39 from JPY 31.20.

• Total assets grew to JPY 203,837 million as of December 31, 2025, with net assets at JPY 85,637 million and an equity-to-asset ratio of 37.4%.

• Net interest-bearing debt rose 3.4% to JPY 40,325 million.

Outlook and guidance

• FY2025 full-year net sales forecast is JPY 134,000 million, with operating profit projected at JPY 8,000 million and net profit attributable to owners of parent revised upward to JPY 4,000 million due to extraordinary income from investment securities sales.

• Annual dividend forecast raised to 28 yen per share, up 4 yen from the previous forecast.