NHK Spring (5991) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2024 rose to ¥391.2 billion, up 8.0% year-over-year, driven by a recovery in HDD suspension demand and favorable exchange rates.

• Operating profit surged to ¥22.9 billion, a 188.6% increase year-over-year, with significant contributions from the DDS segment.

• Profit attributable to owners of parent reached ¥21.5 billion, up 50.1% year-over-year.

• Comprehensive income increased to ¥35.5 billion from ¥21.8 billion year-over-year, reflecting strong operational and non-operational gains.

Financial highlights

• Operating profit margin improved to 5.9% from 2.2% year-over-year.

• Ordinary profit was ¥27.0 billion, up 43.8% year-over-year.

• Gross profit for the six months was ¥52.6 billion, up from ¥34.3 billion year-over-year.

• Extraordinary profits included a ¥2.0 billion gain from settlement proceeds.

• Total assets grew to ¥697.7 billion as of September 30, 2024, with net assets at ¥424.3 billion and equity ratio stable at 58.7%.

Outlook and guidance

• Full-year net sales forecast maintained at ¥800.0 billion, up 4.3% from the previous year.

• Operating profit forecast raised to ¥50.0 billion, up 44.3% year-over-year.

• Full-year EPS forecast is ¥208.93; dividend forecast is ¥63.00 per share.

• DDS segment expected to drive growth, with HDD suspension demand projected to increase further.

• Automotive-related businesses expected to remain sluggish, while non-automotive segments, especially DDS and semiconductor components, are forecast to perform strongly.