Makita (6586) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended September 30, 2024 rose 4.5% year-over-year to ¥386,443 million, driven by proactive product launches and yen depreciation.

• Operating profit surged 61.9% year-over-year to ¥51,415 million, with profit attributable to owners of the parent up 83.5% to ¥38,200 million.

• Cost reductions, improved manufacturing efficiency, and favorable foreign exchange rates contributed to higher profitability.

• Demand remained sluggish in housing and construction, but XGT cordless products underpinned sales, especially in Japan and Europe.

Financial highlights

• Gross profit increased to ¥131,917 million from ¥111,800 million year-over-year.

• Operating profit margin improved to 13.3% from 8.6% year-over-year.

• Profit before income taxes rose 70.9% to ¥51,323 million; basic EPS was ¥141.99, up from ¥77.11.

• Total assets decreased to ¥1,046,951 million, mainly due to lower inventories.

• Cash and cash equivalents increased to ¥229,863 million as of September 30, 2024.

Outlook and guidance

• Full-year revenue forecast revised upward to ¥730,000 million (1.5% decline year-over-year), with operating profit expected at ¥85,000 million (28.5% increase year-over-year).

• Profit attributable to owners of the parent forecast at ¥61,000 million, up 39.6% year-over-year; EPS forecast at ¥226.74.

• Assumed exchange rates: 149 yen/USD, 161 yen/EUR, 20.8 yen/RMB for FY2025.

• Dividend policy targets a total return ratio of at least 35%, with a minimum annual dividend of ¥20 per share.