MINEBEA MITSUMI (6479) Q2 2025 earnings summary

Executive summary

• Achieved record high net sales and operating income for Q2 and 1H FY2025, driven by recovery in data centers, aircraft, and strong PT and MLS segments, as well as the acquisition of Minebea Power Semiconductor Device.

• Maintained full-year net sales and operating income forecasts despite uncertainties in the smartphone market, FX trends, and profit decline due to forex losses.

• Strategic focus on expanding high-value product lines, operational efficiency, and ESG initiatives.

• All major business segments posted sales and profit growth, except the Other segment, which saw a decline.

Financial highlights

• Q2 FY2025 net sales: ¥422.8B (+11.3% YoY, +18.9% QoQ); operating income: ¥28.1B (+29.4% YoY, +40.6% QoQ); profit for Q2: ¥12.1B (-26.1% YoY, -13.1% QoQ).

• 1H FY2025 net sales: ¥778.2B (+15.8% YoY); operating income: ¥48.2B (+69.1% YoY); EPS: ¥64.46 (+28.3% YoY).

• Operating margin in Q2: 6.7% (up from 5.7% YoY); 1H operating margin: 6.2% (up from 4.2% YoY).

• Gross profit for 1H: ¥136.3B, up from ¥106.1B YoY.

• Foreign exchange had a positive impact of ¥25.5B YoY and ¥2.3B QoQ on net sales, but forex losses for Q2 totaled ¥9.6B.

Outlook and guidance

• Full-year FY2025 forecast unchanged: net sales ¥1,560B (+11.3% YoY), operating income ¥103B (+40.1% YoY), EPS ¥163.59 (+23.0% YoY); profit for the period revised down to ¥66.0B.

• Segment guidance: PT and MLS to drive growth; SE to see slight decline in operating income; AS to grow 60% in operating income.

• Forex assumption for H2 is set at USD/JPY 145.00, EUR/JPY 157.50.

• Sub-Core segments (mobile, games, backlights) expected to remain weak in H2.

• Basic policy prioritizes stable and continuous dividends, with year-end dividend undecided.