Ebara (6361) Q3 2024 earnings summary

Executive summary

• Achieved record high 3Q and nine-month results for orders, revenue, and operating profit, with strong performance in Precision Machinery and Environmental Solutions segments.

• Despite a ¥6.4–6.5 billion impairment loss on Turkish subsidiary Vansan, overall profit increased year-over-year due to higher revenue and improved profitability.

• Upward revisions for full-year orders (+¥20B) and revenue (+¥15B) reflect progress in Building Service & Industrial and Energy.

• Implemented a 5-for-1 stock split effective July 1, 2024; EPS figures are adjusted accordingly.

Financial highlights

• FY24 1-3Q orders rose 7.6% YoY to ¥643.6B; revenue up 9.6% YoY to ¥604.3B; operating profit up 5.0% YoY to ¥59.8B.

• Profit attributable to owners of parent increased 17.6% YoY to ¥41.0B; EPS up 17.4% YoY to ¥88.87 (post stock split).

• Gross profit increased to ¥196.9B from ¥170.8B YoY.

• Overseas revenue accounted for 66% of total, with notable growth in Asia and North America.

• Cash and cash equivalents increased by ¥35.7B to ¥183.7B during the period.

Outlook and guidance

• FY24 full-year orders forecast revised up to ¥865.0B (+3.0% YoY); revenue to ¥842.0B (+8.9–10.9% YoY); operating profit unchanged at ¥87.0B (+1.1% YoY).

• Profit attributable to owners of parent forecast at ¥60.8B, with basic EPS projected at ¥131.67.

• OP ratio expected at 10.3% for FY24, down 1.0pts YoY.

• Annual dividend per share forecast at ¥46.0 (post stock split); year-end dividend forecast at ¥23.00 per share.

• Precision Machinery and Energy segments revised upward for operating profit, offsetting the impairment in Building Service & Industrial.