Mitsui High-tec (6966) Q3 2025 earnings summary

Executive summary

• Net sales rose 9.8% year-over-year to JPY 158,208 million, driven by strong EV motor core demand and yen depreciation, but operating profit fell 12.3% to JPY 11,465 million and net profit dropped 20.6% to JPY 9,346 million.

• Economic recovery was gradual but uncertain due to US policy changes, a slowing Chinese economy, and Middle East instability; strong EV demand offset weak recovery in automotive and consumer electronics semiconductors.

• Electrical Parts saw sales growth from North America and price pass-throughs, but operating profit declined slightly due to increased expenses and lower margins.

• Electronic Parts experienced decreased orders, especially for automotive and consumer semiconductors, leading to lower sales and operating profit.

Financial highlights

• Net sales: JPY 158,208 million (+9.8% YoY); operating profit: JPY 11,465 million (-12.3% YoY); net profit: JPY 9,346 million (-20.6% YoY).

• EBITDA increased 4.1% YoY to JPY 22,097 million; EBITDA margin nearly flat at 14.0%.

• Gross profit was JPY 23,397 million, down from JPY 23,850 million YoY, with a gross margin of 14.8% versus 16.6% previously.

• Comprehensive income dropped 36.1% YoY to JPY 10,237 million.

• Q3 sequentially: net sales up 1.3%, operating profit down 6.8%, ordinary profit up 19.4%.

Outlook and guidance

• Full-year forecast for FY ending January 31, 2025: net sales JPY 214,000 million (+9.2% YoY), operating profit JPY 13,000 million (-28.3% YoY), net profit JPY 9,500 million (-38.9% YoY), EPS JPY 51.98.

• Electrical Parts expected to outperform guidance on continued strong demand; Electronic Parts to remain flat due to weak auto semiconductor demand.

• Dividend forecast for FY2025 is JPY 72.00 per share, adjusted for the stock split; stable payout policy maintained.