Murata Manufacturing (6981) Q3 2025 earnings summary

Executive summary

• Q3 FY2024 revenue was 448.0 billion yen, down 3.0% sequentially, with operating profit at 76.0 billion yen, down 17.2% from Q2, mainly due to seasonality in smartphones and lower demand for batteries and capacitors in home electronics.

• Revenue for the nine months ended December 31, 2024, rose 6.5% year-over-year to ¥1,331,489 million, driven by strong demand in computers and mobility, and favorable currency effects.

• Operating profit increased 8.9% year-over-year to ¥234,161 million, with profit attributable to owners of parent up 15.4% to ¥201,322 million.

• Profitability was impacted by lower capacity utilization, elimination of unrealized profit in inventories, and increased inventory allowances, despite a positive effect from yen depreciation.

• Orders received increased due to yen weakness, but actual orders declined due to smartphone market seasonality.

Financial highlights

• Q3 FY2024 revenue: 448.0B yen (down 3.0% QoQ, up 2.0% YoY); operating profit: 76.0B yen (down 17.2% QoQ, down 0.3% YoY); profit before tax: 104.5B yen (up 29.9% QoQ, up 62.8% YoY); net income: 71.0B yen (up 11.0% QoQ, up 43.8% YoY).

• Gross margin improved to 41.2% from 39.4% year-over-year; operating margin rose to 17.6%.

• Basic earnings per share increased to ¥107.56 from ¥92.37, reflecting a 16.4% rise.

• Cash and cash equivalents at period end: 573.7B yen (up 40.7B yen YoY).

• Free cash flow for 9 months: 166.6B yen (up 11.8B yen YoY).

Outlook and guidance

• Full-year FY2024 projections and dividend forecasts remain unchanged; revenue projected at 1,700.0B yen (+3.6% YoY), operating profit at 300.0B yen (+39.2% YoY), net income at 235.0B yen (+30.0% YoY).

• Profit attributable to owners of parent expected to reach ¥235,000 million (+30.0%), with EPS of ¥124.39.

• No significant changes anticipated for Q4; demand for AI server components remains strong, and inventory for Q4 is planned to increase.

• Projected annual dividend: 54 yen per share (27 yen interim, 27 yen year-end).

• No revisions to previous forecasts; guidance excludes impact of stock repurchase and cancellation.