Obara Group (6877) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended March 31, 2025, increased 6.6% year-over-year to ¥28,203 million, driven by robust demand in the automotive sector and new contributions from the electrical equipment segment.

• Operating income declined 3.8% year-over-year to ¥4,111 million, and net income attributable to shareholders fell 5.0% to ¥2,942 million.

• The group completed the acquisition of NSSK-QQ (now Energy Components Holdings), expanding into the electrical equipment business.

Financial highlights

• Revenue: ¥28,203 million (+6.6% YoY); Operating income: ¥4,111 million (−3.8% YoY); Ordinary income: ¥4,391 million (−4.3% YoY); Net income: ¥2,942 million (−5.0% YoY).

• EPS for the period was ¥182.44, up from ¥176.96 a year earlier.

• Comprehensive income dropped 34.4% year-over-year to ¥2,558 million, mainly due to foreign currency translation losses.

Outlook and guidance

• Full-year revenue forecast raised to ¥60,700 million (+7.6% YoY), with operating income projected at ¥9,200 million (flat YoY) and net income at ¥6,500 million (+3.3% YoY).

• Guidance revision reflects the impact of the new electrical equipment segment and favorable market conditions.

• Dividend forecast maintained at ¥150 per share for the full year.