Nabtesco (6268) Q3 2024 earnings summary

Executive summary

• Consolidated sales for Q1–Q3 FY2024 were ¥229.8 billion, down 5.6% year-over-year, with operating profit at ¥9.6 billion, down 25.6%, and net profit at ¥5.7 billion, down 57.4% year-over-year.

• Sales declined mainly due to weak demand in Precision Reduction Gears and hydraulic equipment, despite growth in Transport and Accessibility Solutions.

• Progress toward full-year plan: sales at 71.0% and operating profit at 71.4% of targets.

• Impairment loss of ¥656 million recorded on goodwill in the "Others" segment.

Financial highlights

• Operating margin decreased to 4.2% from 5.3% year-over-year.

• Basic EPS fell to ¥47.12 from ¥110.74 year-over-year.

• Gross profit for the period was ¥62,622 million.

• Cash and cash equivalents decreased by ¥9,547 million from December 2023, ending at ¥68,288 million.

• Free cash flow was negative ¥6,487 million for the nine-month period.

Outlook and guidance

• No change to full-year plan; sales and operating profit are tracking at over 71% of annual targets.

• Full-year FY2024 forecast: net sales of ¥323,700 million (up 3.0% year-over-year), operating income of ¥14,700 million (down 22.3%), and net income attributable to owners of ¥9,300 million (down 36.1%).

• Dividend forecast maintained at ¥80 per share for the full year.

• Recovery in Precision Reduction Gears and automation investment expected from 2025.

• Favorable demand environments anticipated for Transport and Accessibility Solutions segments.