Kanadevia (7004) Q2 2025 earnings summary

Executive summary

• Company changed its name to Kanadevia on October 1, 2024, intensifying branding and internal culture reform activities.

• Q2 FY2024 order intake was ¥284.8 billion, net sales ¥269.9 billion, operating income ¥3.1 billion, and net income was a loss of ¥1.1 billion.

• Operating income surged 183.4% year-over-year, while ordinary income dropped 66.5% to ¥639 million.

• Net income per share was -¥6.77, down from ¥2.08 in the prior year period.

• Non-operating loss mainly due to a ¥1.5 billion impairment from an abandoned offshore wind power project.

Financial highlights

• Net sales increased by ¥37.8 billion year-on-year; order intake decreased by ¥61.9 billion.

• Shareholders' equity ratio improved to 33.3% as of September 30, 2024.

• Cash flows from operating activities improved to ¥35.3 billion from ¥8.2 billion year-over-year.

• Cash and deposits at end of Q2: ¥60.0 billion; total assets decreased to ¥483,213 million.

• ROE: 10.6%; ROIC: 7.0%; dividend per share: ¥23.

Outlook and guidance

• Full-year order intake forecast revised upward to ¥680.0 billion (+¥60.0 billion), net sales to ¥590.0 billion (+6.1%).

• Operating income projected at ¥26.0 billion (+6.9%), ordinary income at ¥22.0 billion (-14.2%), and net income forecast raised by ¥2.0 billion to ¥18.0 billion.

• Net income per share forecast at ¥106.81 for the fiscal year ending March 31, 2025.

• Segment net sales guidance increased for Environment business, reflecting strong order intake.

• Operating and ordinary income forecasts remain unchanged.