Kokusai Electric (6525) Q3 2025 earnings summary

Executive summary

• Third quarter and nine-month revenue and profits increased year-over-year and sequentially, driven by strong equipment sales outside China and robust demand for advanced node Logic/Foundry and DRAM, with signs of NAND recovery.

• 1-3Q cumulative results showed revenue up 32.7% year-over-year to ¥174,665 million, with net income up 55.8% to ¥26,057 million and adjusted operating profit up 53.4% to ¥44,557 million.

• Performance is tracking in line with the full-year forecast revised after 2Q, with no changes to guidance.

Financial highlights

• 3Q revenue: JPY 60.1 bn (+11.4% YoY, +21.9% QoQ); 1-3Q revenue: JPY 174.7 bn (+32.7% YoY); 3Q adjusted operating profit: JPY 13.9 bn (+11.9% YoY, +22.8% QoQ); 1-3Q: JPY 44.6 bn (+53.4% YoY).

• 3Q adjusted net income: JPY 9.6 bn (+6.0% YoY, +32.8% QoQ); 1-3Q: JPY 31.3 bn (+54.8% YoY); 3Q net income: JPY 8.0 bn (+1.1% YoY, +68.5% QoQ); 1-3Q: JPY 26.1 bn (+55.8% YoY).

• Gross profit margin for 3Q: 41.4% (-3.2pts YoY); adjusted operating profit margin: 23.1% (+0.1pts YoY); gross profit for 1-3Q: ¥76,231 million.

• Free cash flow in 3Q: net outflow of JPY 5.5 bn; cash and cash equivalents at period end were ¥60,722 million, down from ¥92,619 million at the start of the period.

• Net cash provided by operating activities was ¥20,658 million, while net cash used in investing and financing activities totaled ¥24,065 million and ¥28,899 million, respectively.

Outlook and guidance

• Full-year revenue forecast is ¥238,000 million, up 31.6% year-over-year, with adjusted operating profit projected at ¥56,600 million and adjusted net income at ¥39,600 million.

• Net income expected to reach ¥33,300 million, up 48.8% year-over-year; annual dividend forecast is ¥36.00 per share.

• Equipment revenue expected to rise 39% YoY, service revenue up 18% YoY; Non-China revenue to grow, China revenue to decline in 2H.

• FY26/3 direction: Non-China revenue to grow ~30%, China revenue to decrease 20–30%.