Japan Elevator Service (6544) Q1 2025 earnings summary

Executive summary

• Achieved record highs in sales and profits for Q1 FY2025, with net sales up 21.6% to ¥11,544 million, operating profit up 47.1% to ¥1,924 million, and profit attributable to owners up 50% to ¥1,256 million, in line with forecasts.

• Growth was driven by increased maintenance contracts, strong repair and modernization demand, and enhanced sales structure and service quality improvements.

Financial highlights

• Gross profit increased to ¥4,413 million from ¥3,496 million year-over-year, with gross margin improving.

• EBITDA grew 38.3% year-over-year to ¥2,361 million.

• EPS rose 50% year-over-year to ¥14.11.

• Comprehensive income for the quarter was ¥1,279 million, up 48% year-over-year.

• Profit attributable to owners of parent increased 50% year-over-year to ¥1,256 million.

Outlook and guidance

• FY2025 forecasts maintained: net sales expected at ¥47,000 million (+11.3% YoY), operating profit at ¥8,000 million (+17.3% YoY), profit attributable to owners at ¥5,100 million (+12.9% YoY), and EPS at ¥57.27.

• Operating profit margin projected to reach a record 17.0%.

• Year-end dividend forecast is pending; no change to previously announced earnings forecast.

• Stable growth anticipated in maintenance, repair, and modernization services.