HORIBA (6856) Q4 2024 earnings summary

Executive summary

• Net sales reached a record ¥317.4bn in 2024, up 9.2% year-over-year, driven by strong Automotive and Semiconductor segments and yen depreciation.

• Operating profit rose to ¥48.3bn (+2.2% YoY), while ordinary profit was ¥50.2bn (+4.0% YoY).

• Net income attributable to shareholders declined 16.7% to ¥33.6bn, mainly due to a prior-year gain on sale of subsidiaries and a current-year impairment loss, but slightly above forecasts.

• The company will transition from five business segments to three fields (Energy & Environment, Bio & Healthcare, Materials & Semiconductor) starting FY2025.

• Strong performance in Materials & Semiconductor, with continued investments in R&D and human resources.

Financial highlights

• Operating profit margin was 15.2%, a 1.1 percentage point decrease year-over-year, but 0.3 points above forecast.

• Ordinary profit reached ¥50.2bn, up ¥1.9bn year-over-year.

• Free cash flow was ¥22.7bn, with operating cash inflow of ¥40.3bn and investing cash outflow of ¥17.6bn.

• Gross margin was 43.1% in FY2024, down from 43.8% in FY2023.

• Equity ratio improved to 65.2% at year-end.

Outlook and guidance

• FY2025 sales forecast is ¥340.0bn (+7.1% YoY), with operating profit projected at ¥54.0bn (+11.7% YoY).

• Net income forecast for 2025 is ¥38.0bn, up 13.1% from 2024.

• 2028 plan targets sales of ¥450.0bn and operating profit of ¥80.0bn.

• Annual dividend forecast for FY2025 is ¥290/share, up from ¥270 in FY2024.