Koito Manufacturing (7276) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of fiscal 2024 decreased 5.1% year-over-year to ¥444.0 billion, mainly due to lower production in Japan and weak sales in China.

• Operating income dropped 44.4% to ¥18.0 billion, and profit attributable to owners of parent fell 55.8% to ¥11.2 billion, impacted by reduced revenue, higher fixed costs, and increased R&D investment.

• Global auto production declined in Japan and North America, while China saw growth in local automakers but a sharp drop for Japanese brands.

Financial highlights

• First half net sales: ¥444.0 billion (down 5.1% year-over-year); operating income: ¥18.1 billion (down 44.4%); recurring profit: ¥19.9 billion (down 46.2%).

• Net income per share: ¥37.30, down from ¥80.76 in the prior year period.

• Comprehensive income for the first half: ¥10.2 billion, sharply down from ¥63.2 billion a year ago.

• Cash and cash equivalents at period end: ¥124.2 billion, down ¥10.2 billion from March 2024.

Outlook and guidance

• Full-year consolidated net sales forecast revised down to ¥912.0 billion (down 4.0% year-over-year); operating income expected at ¥43.0 billion (down 23.2%).

• Profit attributable to owners of parent projected at ¥31.0 billion (down 24.2% year-over-year); net income per share forecast at ¥104.87.

• Dividend per share for the year raised to ¥56, up ¥3 from the previous year.

• Management expects continued challenges in global auto production, especially in Japan and China, with no full recovery anticipated this fiscal year.