MINEBEA MITSUMI (6479) Q1 2025 earnings summary

Executive summary

• Net sales rose 21.6% year-on-year to JPY 355.454 billion, setting a record high for Q1, with operating income tripling to JPY 20.025 billion and profit attributable to owners up 3.4 times to JPY 13.936 billion.

• Market environment mostly recovered to pre-COVID-19 levels, with strong performance in Precision Technologies and Motor, Lighting & Sensing segments.

• Acquisition of Minebea Power Semiconductor Device Inc. contributed to results, with segment reclassifications reflecting organizational changes.

• Full-year forecast revised upward, reflecting Q1 outperformance and expecting continued strong performance in Q2.

Financial highlights

• Q1 net sales: JPY 355.454 billion (+21.6% YoY, +1.9% QoQ); operating income: JPY 20.025 billion (x3.0 YoY, -1.6% QoQ); profit: JPY 13.936 billion (x3.4 YoY, -24.0% QoQ); EPS: JPY 34.46.

• Operating margin for Q1 was 5.6%, up 3.3 points YoY, down 0.2 points QoQ.

• Inventory at quarter-end was JPY 359.6 billion, up JPY 64.7 billion from three months prior, mainly due to strategic buildup and FX effects.

• Net interest-bearing debt rose to JPY 251.2 billion, up JPY 42.6 billion from the previous fiscal year-end.

• Gross profit increased to JPY 63.354 billion from JPY 44.494 billion YoY.

Outlook and guidance

• Full-year forecast revised upward: net sales targeted at JPY 1,560 billion (+11.3% YoY), operating income at JPY 103 billion (+40.1% YoY), profit at JPY 73 billion (+35.1% YoY), and EPS at JPY 180.52.

• Upward revision reflects strong Q1 and expected continued demand for ball bearings, spindle motors, and semiconductors.

• Segment-level revisions: PT and MLS up, SE down, AS unchanged.

• Exchange rate assumption for the year is 140 yen/USD.

• Interim and year-end dividends for FY2025 to be decided later, targeting a payout ratio of around 20%.