DMG Mori (6141) Q2 2025 earnings summary

Executive summary

• Order intake for 1H FY2025 reached JPY 248.6 bn, up 8.4% from 2H FY2024, with strong demand in aerospace, defense, data handling, and energy sectors.

• Sales revenue for 1H FY2025 was JPY 227.5 bn, down 13.7% year-over-year; operating profit dropped 73% to JPY 6.5 bn.

• Average machine order price per unit rose to JPY 80.8 mil, exceeding the 2030 plan, driven by large and automated orders.

• Regional order strength was seen in the Americas, with steady performance in Asia, India, and Japan; Europe and China orders have bottomed out and are expected to recover.

• Organizational reforms and new technology centers were launched to enhance customer value and operational efficiency.

Financial highlights

• Net profit from continued operations for 1H FY2025 was JPY 2.1 bn, down 86.1% year-over-year.

• Depreciation and amortization for 1H FY2025 totaled JPY 16.5 bn; capital expenditure was JPY 11.8 bn.

• Operating margin dropped to 2.9% in 1H 2025 from 9.1% in 1H 2024.

• Net D/E ratio remains low at 0.25; equity ratio at 39.2% as of June 2025.

• Net cash flows from operating activities for H1 2025 were JPY 784 million, down from JPY 8,377 million in H1 2024.

Outlook and guidance

• Full-year FY2025 sales revenue forecast at JPY 510.0 bn, down 5.7% from FY2024.

• Full-year operating profit margin expected at 7.5%, with sales of medium- to large-sized machines concentrated in 4Q.

• Profit attributable to owners is projected at JPY 20.0 bn, a 159.7% increase due to the absence of prior year one-time losses.

• Dividend per share for FY2025 is forecast at JPY 105.00, up from JPY 100.00 in FY2024.

• No revision to the previously announced forecast; exchange rates assumed at JPY 144/USD and JPY 161/EUR.