Oki Electric Industry (6703) Q1 2025 earnings summary

Executive summary

• Net sales rose to ¥97.9 billion in Q1 FY2025, up 20.1% or ¥16.4 billion year-over-year, driven by large projects and improved cost environment.

• Operating income improved to ¥3.9 billion from break-even or a loss last year, with ordinary income also at ¥3.9 billion.

• Profit attributable to owners was ¥1.8 billion, a turnaround from a ¥0.2 billion loss last year.

• Growth was led by Enterprise Solutions and the elimination of prior material cost increases.

• The start of the fiscal year is roughly in line with the plan.

Financial highlights

• Gross profit increased to ¥26.3 billion from ¥16.8 billion year-over-year.

• Ordinary income reached ¥3.9 billion, up ¥4.2 billion year-over-year; profit attributable to owners was ¥1.8 billion, up ¥2.0 billion.

• Basic earnings per share for Q1 was ¥20.82, up from a loss per share of ¥1.81 last year.

• Operating cash flow increased to ¥14.3 billion, with free cash flow at ¥9.9 billion, both significantly higher year-over-year.

• Cash and cash equivalents rose to ¥34.8 billion, up ¥4.0 billion from last year.

Outlook and guidance

• Full-year FY2025 guidance maintained: net sales ¥460.0 billion (+9.0% YoY), operating income ¥16.0 billion (+14.4%), ordinary income ¥14.5 billion (+20.7%), profit attributable to owners of parent ¥9.5 billion (+63.0%).

• No change to dividend forecast: ¥30 per share for the year.

• Exchange rate assumptions for FY2024 are USD/JPY 140 and EUR/JPY 150.

• Management will monitor for significant deviations due to market or currency volatility.