HORIBA (6856) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 increased by 2.3% year-over-year to ¥71,877 million, with operating profit up 17.4% to ¥11,755 million and net income up 15.4% to ¥8,113 million, driven by strong performance in the Materials & Semiconductor segment.

• Operating and net income ratios improved to 16.4% and 11.3%, respectively, compared to the same quarter last year.

• Sales growth was primarily led by increased demand from semiconductor production equipment manufacturers in Asia.

• The business segment structure was reorganized into Energy & Environment, Bio & Healthcare, and Materials & Semiconductor from FY2025 to align with the mid- to long-term management plan MLMAP2028.

Financial highlights

• Gross margin improved as gross income increased to ¥33,787 million from ¥31,213 million year-over-year.

• Operating margin improved by 2.2 percentage points to 16.4%.

• Ordinary income increased 14.4% year-over-year to ¥11,629 million.

• EPS (diluted) for Q1 2025 was ¥192.40, up from ¥165.69 in Q1 2024.

• Exchange rate movements contributed positively to sales and operating profit, with the yen weakening against the US dollar and euro.

Outlook and guidance

• Full-year 2025 sales forecast revised to ¥335,000 million, down ¥5,000 million from previous guidance due to exchange rate adjustments.

• Operating profit forecast at ¥52,000 million, down ¥2,000 million from prior forecast; net income forecast at ¥36,000 million.

• Dividend forecast for FY2025 remains unchanged at ¥290 per share.

• Continued strong demand expected for advanced semiconductors; market outlook unchanged.