Ebara (6361) Q4 2024 earnings summary

Executive summary

• Orders, revenue, and operating profit reached record highs for the fourth consecutive year, with FY24 revenue at ¥866.7B (+14.1% YoY) and operating profit at ¥97.95B (+13.9% YoY).

• Profit attributable to owners increased 18.4% to ¥71.4B; EPS rose to ¥154.62 (+18.3% YoY).

• Growth was driven by strong demand in Precision Machinery (AI/semiconductors), robust service demand, and improved profitability.

• Goodwill impairment in the Building Service & Industrial segment, including a ¥7.09B loss for the Turkish subsidiary.

• FY25 targets further record highs in orders, revenue, and operating profit, with continued investment under E-Plan 2025.

Financial highlights

• FY24 orders: ¥860.6B (+4.9% YoY); revenue: ¥866.7B (+14.1% YoY); operating profit: ¥97.95B (+13.9% YoY); profit attributable to owners: ¥71.4B (+18.4% YoY); EPS: ¥154.62 (+18.3% YoY).

• ROIC: 12.2%; ROE: 16.2%; operating margin: 11.3%; equity ratio: 47.1%.

• FY24 annual dividend per share raised to ¥56 (post-split); FY25 planned at ¥56.

• Free cash flow: ¥52.39B, up ¥18.0B YoY; cash and cash equivalents at year-end: ¥171.0B.

• S&S revenue increased across segments, with notable growth in Precision Machinery and Building Service & Industrial.

Outlook and guidance

• FY25 guidance: orders ¥940.0B (+9.2% YoY), revenue ¥900.0B (+3.8% YoY), operating profit ¥101.5B (+3.6% YoY), OP ratio 11.3%.

• Profit attributable to owners projected at ¥72.4B (+1.4% YoY); annual dividend forecast: ¥56.00 per share.

• Assumes stable semiconductor and infrastructure demand, but notes risks from global inflation, geopolitical tensions, and FX volatility.

• Building Service & Industrial segment expected to recover profitability; Precision Machinery to continue growth driven by generative AI demand.

• Continued high investment in growth and infrastructure, especially in Precision Machinery.