Nagase (8012) Q3 2025 earnings summary

Executive summary

• Achieved record-high gross profit and operating income for the cumulative third quarter, with improved margins across all business segments despite higher SG&A expenses driven by logistics and personnel costs.

• Net sales for the nine months ended December 31, 2024, rose 5.9% year-over-year to ¥718,044 million, with operating income up 34.7% to ¥31,002 million and profit attributable to owners of the parent up 20.6% to ¥21,712 million.

• Extraordinary items included a ¥2.0 billion loss from withdrawal in China, offset by gains from sales of cross-shareholdings and fixed assets.

• Comprehensive income decreased 37.7% year-over-year to ¥24,949 million, reflecting significant declines in other comprehensive income components.

Financial highlights

• Sales for FY2024 3Q rose to ¥718.0 billion, up 6% year-over-year; gross profit increased 13% to ¥137.4 billion, with a margin of 19.1%.

• Gross profit increased 13.1% year-over-year to ¥137,411 million for the nine-month period.

• Operating income grew 35% year-over-year to ¥31.0 billion, with an operating margin of 4.3%.

• Ordinary income rose 32.4% year-over-year to ¥30,700 million.

• Earnings per share for the nine months were ¥194.79, up from ¥156.19 in the prior year.

Outlook and guidance

• FY2024 full-year guidance unchanged: sales ¥940.0 billion, gross profit ¥180.0 billion, operating income ¥36.5 billion, net profit ¥28.0 billion.

• Full-year fiscal 2025 forecast projects net sales of ¥940,000 million (up 4.4% year-over-year), operating income of ¥36,500 million (up 19.2%), and profit attributable to owners of the parent of ¥28,000 million (up 25.0%).

• Semiconductor and automobile-related businesses expected to remain strong; food-related businesses to remain weak, mainly due to Prinova Group.

• SG&A expenses projected to rise with business growth, but retirement benefit actuarial differences will decrease.

• No revisions to the latest consolidated earnings forecast.