Disco (6146) Q2 2025 earnings summary

Executive summary

• Net sales for 2Q FY2025 reached ¥104.6B, up 16.4% QoQ and 8.7% YoY, with 1H FY2025 net sales totaling ¥194.5B, driven by equipment inspection/acceptance and generative AI demand.

• Net income for 2Q FY2025 was ¥32.1B, a 35.3% QoQ increase and 8.1% YoY growth; 1H FY2025 net income was ¥55.9B, up 4.6% YoY.

• Operating income for 1H FY2025 was ¥78.9B, up 3.8% YoY; comprehensive income increased 2.5% YoY to ¥56.1B.

• Net income per share rose to ¥515.70 from ¥493.20 YoY.

• Record-high half-yearly shipments, especially for generative AI applications.

Financial highlights

• Gross profit margin for 2Q FY2025 was 69.5%, up 1.4p QoQ but down 2.2p YoY; 1H FY2025 gross profit was ¥134.0B.

• Operating income for 2Q FY2025 was ¥44.4B, up 28.7% QoQ and 4.3% YoY; ordinary income margin reached 43.5%.

• Net income per share increased to ¥515.70 YoY.

• Cash and cash equivalents at end-2Q were ¥222.9B.

• Overseas sales ratio in 2Q FY2025 was 89.9%.

Outlook and guidance

• 3Q FY2025 net sales forecasted at ¥92.6B, with operating income of ¥32.8B and net income of ¥24.4B.

• For the nine months ending December 31, 2025, net sales are forecast at ¥287.1B, operating income at ¥111.7B, and net income at ¥80.3B.

• Equipment shipments for generative AI expected to remain strong; advanced packaging ramp-up anticipated.

• Assumed 3Q exchange rates: 1 USD = ¥145, 1 EUR = ¥172.

• Dividend forecast for FY2025 revised, with a 2Q-end dividend of ¥129.00 per share.