Ebara (6361) Q2 2025 earnings summary

Executive summary

• Orders, revenue, operating profit, and profit attributable to owners all reached record highs for 2Q, with strong performance in Precision Machinery and Environmental Solutions offsetting a decline in Energy.

• Revenue for the six months ended June 30, 2025 rose 13.7% year-over-year to ¥448.7B, operating profit up 25.3% to ¥50.0B, and profit attributable to owners up 7.3% to ¥31.3B.

• Orders received increased 12.9% year-over-year, driven by strong demand in Environmental and Precision Machinery segments, despite a decline in Energy orders.

• The full-year consolidated forecast was revised upward, reflecting increased operating profit in Environmental Solutions and other segments.

• Limited impact from US tariff policies; treasury share buyback of up to ¥20 billion announced.

Financial highlights

• 1-2Q FY25 orders: ¥451.3B (+12.9% YoY); revenue: ¥448.7B (+13.7% YoY); operating profit: ¥50.0B (+25.3% YoY); OP ratio: 11.2% (+1.1pts YoY).

• Profit attributable to owners: ¥31.3B (+7.3% YoY); EPS: ¥67.84 (+7.2% YoY, post stock split).

• Gross profit increased to ¥145.0B from ¥126.7B YoY; gross margin improved.

• Overseas revenue share rose to 66%; strong growth in Taiwan, South Korea, and other Asia (+65.8% YoY).

• Total assets decreased to ¥991.8B from ¥1,005.1B at year-end 2024, mainly due to lower contract assets and receivables.

Outlook and guidance

• FY25 full-year forecast: orders ¥940.0B (+9.2% YoY), revenue ¥900.0B (+3.8% YoY), operating profit ¥102.5B (+4.6% YoY), OP ratio 11.4%.

• Profit attributable to owners forecast at ¥72.4B (+1.4% YoY); EPS ¥156.72.

• Upward revision to operating profit based on strong 1-2Q results, especially in Environmental Solutions.

• Dividend forecast for FY2025 is ¥56.00 per share.

• Minimal impact expected from US tariffs; maximum projected effect of ¥1.8B.