DENSO (6902) Q2 2025 earnings summary

Executive summary

• Revenue declined 1.1% year-over-year to ¥3,474.9B due to lower vehicle production and slow sales in Asia, partially offset by yen depreciation.

• Operating profit rose 18.6% year-over-year to ¥251.2B, driven by cost reductions, foreign exchange gains, and effective cost management.

• Annual dividend increased by ¥9 to ¥64 per share, with interim and year-end dividends of ¥32 each.

• Profit attributable to owners of the parent increased 13.0% year-over-year to ¥190.8B.

• Comprehensive income for the period was negative ¥402.4B, impacted by mark-to-market losses on investment securities.

Financial highlights

• Profit before income taxes increased 13.8% year-over-year to ¥281.7B; net profit attributable to owners rose 13.0% to ¥190.8B.

• Gross profit was ¥499.6B with a gross margin of 14.4%, nearly flat year-over-year.

• Basic earnings per share increased to ¥65.56 from ¥56.40 year-over-year.

• Net cash provided by operating activities was ¥392.9B, down from ¥501.1B in the prior year.

• Total assets decreased to ¥8,134.3B from ¥9,093.4B at prior year-end.

Outlook and guidance

• Full-year revenue forecast revised downward to ¥7,020.0B, reflecting lower production expectations.

• Operating profit forecast raised to ¥550.0B, up 44.5% year-over-year.

• Net profit forecast for FY2025 is ¥437.0B, up 39.7% year-over-year.

• Return on equity expected at 8.3% for FY2025, down from 9.3% in FY2024.

• Exchange rate assumptions for the second half: 1 USD = 145 yen, 1 EUR = 155 yen.