NSK (6471) Q2 2025 earnings summary

Executive summary

• Sales increased 2.8% year-over-year to ¥397.6 billion in H1 FY2024, driven by yen depreciation despite mixed global demand.

• Operating income declined 12.8% to ¥9.7 billion, impacted by one-time structural reform expenses of ¥2.0 billion.

• Net income attributable to owners of the parent for continuing operations fell 35.0% to ¥3.7 billion, while total net income including discontinued operations rose 198.5% to ¥2.0 billion due to one-time effects.

• H1 results were in line with the May 2024 forecast, but the full-year forecast was revised downward due to weaker demand.

• The steering business was classified as discontinued operations, with the transfer of RNSS in India completed in September 2024.

Financial highlights

• Operating income margin for H1 FY2024 was 2.4%, or 2.9% excluding one-time expenses.

• Income before income taxes dropped 26.5% year-over-year to ¥7.7 billion.

• Gross profit from continuing operations increased to ¥85.7 billion from ¥80.0 billion year-over-year.

• Basic earnings per share (including discontinued operations) rose to ¥4.03 from ¥1.33 year-over-year.

• Total comprehensive income turned negative at -¥10.0 billion, mainly due to adverse currency translation effects.

Outlook and guidance

• Full-year FY2024 sales forecast revised down by ¥30.0 billion to ¥790.0 billion, and operating income forecast cut by ¥14.0 billion to ¥22.0 billion.

• Net income forecast for the year reduced by ¥13.0 billion to ¥6.0 billion, a 68.4% decrease year-over-year.

• Dividend forecast set at ¥34/share for the full year, increased from FY2023.

• Weakness expected to persist in industrial machinery (especially China, Europe) and automotive (global vehicle production revised down to 88 million units from 90 million).

• Outlook subject to risks from global economic uncertainty, monetary policy shifts, and geopolitical tensions.