Nakanishi (7716) Q3 2025 earnings summary

Executive summary

• Consolidated net sales increased by 3.8% year-over-year in Q3 FY2025 to ¥58,752 million, with all segments reporting sales growth and strong performance in the Surgical segment.

• EBITDA declined 5.2% year-over-year to ¥14,786 million but exceeded internal plans; operating income fell 7.5% to ¥10,541 million.

• Net income attributable to owners of parent dropped 23.5% year-over-year to ¥6,181 million; comprehensive income decreased 43.5% to ¥5,139 million.

• Full-year financial forecast and dividend outlook remain unchanged from May 12, 2025, despite ongoing uncertainties in U.S. demand and tariff impacts.

Financial highlights

• Q3 FY2025 net sales: ¥58,752M (+3.8% YoY); gross profit: ¥33,541M (+1.9% YoY); EBITDA: ¥14,786M (-5.2% YoY); operating profit: ¥10,540M (-7.5% YoY); EPS: ¥73.85.

• Forex impact on net sales: -¥404M YoY; positive impact vs. forecast: +¥1,649M.

• Ordinary income decreased 11.0% YoY to ¥10,934M; profit attributable to owners: ¥6,181M (-23.5% YoY).

• Total assets increased to ¥162,466M as of September 30, 2025; net assets at ¥119,564M, equity ratio 73.3%.

• EPS for the period was ¥73.85, down from ¥95.42 YoY.

Outlook and guidance

• FY2025 forecast: net sales ¥80,655M (+4.7% YoY), EBITDA ¥18,932M (-7.5% YoY), operating profit ¥13,150M (-9.9% YoY), net income attributable to owners ¥8,372M (-2.4% YoY), EPS ¥99.14.

• No changes to the full-year forecast or dividend since May 12, 2025; tariff impacts offset by cost reductions and price pass-through.

• Sales growth expected across all business segments; profit decrease due to higher SGA expenses for growth investments.