NOK (7240) Q2 2025 earnings summary

Executive summary

• Net sales rose 11.1% year-over-year to ¥393.6 billion for the six months ended September 30, 2024, with operating income up 292.4% to ¥19.1 billion and profit attributable to owners of parent up 11.7% to ¥13.6 billion.

• Sales in the seal business were flat, while the electronic product business saw significant growth; operating income increased in both segments.

• Comprehensive income turned negative at ¥-2.4 billion, compared to ¥46.6 billion in the prior year period, mainly due to negative other comprehensive income items.

Financial highlights

• Gross profit increased to ¥68.3 billion from ¥51.1 billion year-over-year, with gross margin improving.

• Operating income surged to ¥19.1 billion from ¥4.9 billion, and ordinary income rose to ¥21.1 billion from ¥16.4 billion.

• Net income per share was ¥82.61, up from ¥71.84 year-over-year.

• Total assets decreased to ¥922.9 billion from ¥952.4 billion at the end of March 2024.

• Net assets declined to ¥621.4 billion, with a capital adequacy ratio of 62.3%.

Outlook and guidance

• Full-year net sales forecast revised upward to ¥745.5 billion (up 0.7% year-over-year), with operating income forecast at ¥31.9 billion (up 39.2%).

• Ordinary income forecast at ¥38.7 billion (down 3.9%), and profit attributable to owners of parent at ¥22.8 billion (down 27.9%).

• Net income per share for the full year projected at ¥138.45.