Nichiha (7943) Q2 2025 earnings summary

Executive summary

• Consolidated/net sales for the first half of FY2025 rose 6.7% year-over-year to ¥73,019 million, driven by domestic and overseas growth.

• Operating income/profit declined 9.7% year-over-year to ¥3,435 million, with net income attributable to shareholders down 45.2% to ¥1,829 million.

• Domestic market share in ceramic siding reached record highs, while U.S. operations faced profit declines due to operational and market challenges.

• Ordinary profit fell 30.4% to ¥3,235 million.

• Comprehensive income increased to ¥8,036 million, up from ¥7,288 million in the prior year period.

Financial highlights

• Revenue increased by ¥4,611 million (+6.7%) year-over-year; overseas sales surged 32.8%.

• Gross profit increased to ¥25,069 million from ¥23,856 million year-over-year.

• Operating margin fell to 4.7% from 5.6% a year earlier.

• Earnings per share for the period were ¥52.46, down from ¥91.90 in the previous year.

• Net income dropped by ¥1,506 million (-45.2%) year-over-year.

Outlook and guidance

• Full-year revenue/net sales forecast maintained at ¥148,500 million (+4.0% year-over-year).

• Operating income/profit guidance revised down to ¥7,000 million (-31.4% year-over-year); ordinary profit forecast at ¥7,300 million.

• Profit attributable to owners of parent projected at ¥4,500 million, reflecting a significant year-over-year decline.

• U.S. business outlook lowered due to hurricane impacts, inventory adjustments, and operational issues.

• Dividend forecast unchanged at ¥114 per share.