Nabtesco (6268) Q3 2025 earnings summary

Executive summary

• Q1–Q3 sales rose to ¥219.2 billion, up 11% year-over-year, with operating profit up 81% to ¥15.4 billion, driven by strong demand in Component, Transport, and Accessibility Solutions.

• Net profit attributable to owners increased 103% year-over-year to ¥11.5 billion, including discontinued operations.

• The hydraulic equipment business was classified as a discontinued operation from Q3 FY2025, impacting segment reporting and financials.

• All business segments contributed to profit growth, with significant impact from Precision Reduction Gears, Railroad, and Marine segments.

• Profitability improvements were supported by "Project 10."

Financial highlights

• Q1–Q3 sales: ¥219.2 billion (+11% YoY); operating profit: ¥15.4 billion (+81% YoY); net profit: ¥11.5 billion (+103% YoY).

• Orders received rose 11.6% YoY to ¥235.4 billion.

• Gross profit for the nine months was ¥65.4 billion, up from ¥58.9 billion YoY.

• Basic earnings per share increased to ¥95.97 from ¥47.12 YoY.

• Operating profit margin improved to 7.0% from 4.3% YoY.

Outlook and guidance

• Full-year sales forecast: ¥300.7 billion; operating profit: ¥20.8 billion; net profit: ¥14.9 billion.

• Operating profit margin expected at 6.9%; ROIC at 4.6%.

• Basic earnings per share for the full year projected at ¥124.95.

• No change in full-year plan after reclassification of hydraulic equipment business.

• Full-year forecast revised down 12.6% due to reclassification.