Fanuc (6954) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2024 were ¥195.1B, down 3.3% year-over-year amid unpredictable market conditions and ongoing inventory adjustments.

• Operating income was ¥33.0B, up 1.1% year-over-year but down 4.5% from the previous quarter.

• Net income was ¥28.8B, a 5.0% decrease year-over-year and a 17.3% drop sequentially.

• Orders increased 12.3% year-over-year and 14.1% sequentially, signaling improved demand.

Financial highlights

• Gross margin remained stable at 34.7% in Q1 FY2024.

• Ordinary income was ¥41.1B, down 1.3% year-over-year and 11.8% sequentially.

• Net income per share was ¥30.46, down from ¥31.82 in the prior year period.

• Total assets increased to ¥1,952,557 million, and net assets rose to ¥1,745,559 million as of June 30, 2024.

• FX rates impacted results, with the yen weakening against both USD and EUR.

Outlook and guidance

• FY2024 net sales forecast revised to ¥784.3B, up 5.1% from the previous forecast but down 1.4% from FY2023 actual.

• Operating income forecast raised to ¥143.0B, up 18.2% from previous guidance.

• Net income forecast increased to ¥125.3B, up 16.8% from prior guidance.

• FX assumptions for the remainder of FY2024: ¥145/USD and ¥155/EUR.

• Management notes forecasts are subject to risks from market demand, competition, and economic conditions.