Ebara (6361) Q2 2024 earnings summary

Executive summary

• Orders, revenue, and operating profit reached record highs in 2Q/H1 2024, with orders up 8.7% YoY to ¥399.6B, revenue up 8.4% to ¥394.5B, and operating profit up 18.3% to ¥39.9B.

• Precision Machinery orders rose 45.0% YoY, reflecting a semiconductor market recovery.

• Profit attributable to owners increased 41.9% YoY to ¥29.2B; EPS at ¥63.28 (post stock split).

• Upward revision of full-year orders forecast by ¥11.0B to ¥845.0B; revenue and operating profit forecasts unchanged.

• 5-for-1 stock split executed July 1, 2024.

Financial highlights

• 1-2Q FY24: orders ¥399.6B (+8.7% YoY), revenue ¥394.5B (+8.4% YoY), operating profit ¥39.9B (+18.3% YoY), OP ratio 10.1% (+0.8pts YoY).

• Profit attributable to owners: ¥29.2B (+41.9% YoY); EPS: ¥63.28 (+41.6% YoY, post stock split).

• Free cash flow for 1-2Q: ¥47.4B (+¥11.1B YoY); equity ratio: 46.4%.

• Gross profit rose to ¥126.7B; total comprehensive income surged 58.1% YoY to ¥54.05B.

• Cash and cash equivalents increased by ¥30.43B since December 2023, ending at ¥178.49B.

Outlook and guidance

• Full-year FY24 orders forecast raised to ¥845.0B (+3.0% YoY); revenue and operating profit forecasts unchanged at ¥827.0B and ¥87.0B.

• OP ratio for FY24 expected at 10.5%; ROE at 14.2%; EPS at ¥131.68.

• Precision Machinery segment expected to benefit from gradual semiconductor market recovery in 2H.

• Dividend per share forecast: ¥46.0 (post stock split); ¥115 (pre-split basis).