Koito Manufacturing (7276) Q3 2025 earnings summary

Executive summary

• Net sales for the third quarter of fiscal 2024 decreased by 5.6% year-over-year to ¥675.1 billion, with operating income down 37.9% to ¥30.1 billion and profit attributable to owners of parent down 20.4% to ¥29.2 billion.

• Declines were driven by reduced production in Japan due to automaker fraud, quality issues in North America, and sluggish sales in China, partially offset by increased exports and new orders in North America.

• Total assets decreased by ¥56.7 billion to ¥908.8 billion, and net assets fell by ¥25.2 billion to ¥694.0 billion, mainly due to treasury stock acquisition and lower investment securities.

Financial highlights

• Operating income for the third quarter was ¥30.1 billion, down 37.9% year-over-year; recurring profit was ¥34.2 billion, down 35.6%.

• Net income per share for the period was ¥97.74, compared to ¥117.08 in the previous year.

• Comprehensive income dropped 46.0% year-over-year to ¥34.7 billion.

• Cash and cash equivalents at period end were ¥103.6 billion, down ¥30.9 billion from the previous fiscal year.

Outlook and guidance

• Full-year fiscal 2024 forecast: net sales of ¥912.0 billion (down 4.0% year-over-year), operating income of ¥43.0 billion (down 23.2%), and profit attributable to owners of parent of ¥31.0 billion (down 24.2%).

• Management expects production declines to ease in Q4, with a recovery trend in automobile production, but overall sales and profits to remain below prior year.