Kato Sangyo (9869) Q2 2025 earnings summary

Executive summary

• Operating revenues for the six months ended March 31, 2025 rose 4.5% year-over-year to ¥610,360 million, with operating profit up 6.3% to ¥10,146 million and ordinary profit up 5.7% to ¥11,040 million.

• Profit attributable to owners of parent declined 5.5% year-over-year to ¥7,254 million, while comprehensive income dropped 48.5% to ¥6,289 million.

• Basic earnings per share for the period was ¥232.83, slightly down from ¥235.59 in the prior year.

Financial highlights

• Gross profit increased to ¥41,599 million from ¥38,743 million year-over-year, and operating gross profit rose to ¥44,453 million.

• Extraordinary income was ¥560 million, mainly from gain on sale of investment securities, while extraordinary losses totaled ¥149 million.

• Net cash used in operating activities was ¥11,349 million, a significant decrease from net cash provided of ¥225 million in the prior year.

• Cash and cash equivalents at period end were ¥71,792 million, down from ¥83,491 million at the start of the period.

Outlook and guidance

• Full-year forecast for fiscal year ending September 30, 2025: operating revenues of ¥1,208,000 million (+3.3% year-over-year), operating profit of ¥16,650 million (-1.2%), ordinary profit of ¥18,300 million (-2.1%), and profit attributable to owners of parent of ¥11,830 million (-18.2%).

• Basic earnings per share for the full year is projected at ¥379.71.