Okuma (6103) Q2 2025 earnings summary

Executive summary

• Sales for the first half of FY2024 declined 13.8% year-over-year to ¥95,247 million, with operating income down 53.0% and net income down 59.1% compared to the same period last year.

• Orders and sales decreased across most product categories, with lathes and machining centers seeing notable declines.

• Comprehensive income dropped sharply to ¥601 million from ¥17,597 million in the prior year period.

• The company is advancing its mid-term management plan, targeting ¥250 billion in sales by FY2025 and ¥300 billion by FY2030.

Financial highlights

• Operating income margin dropped to 5.9% in 2Q FY2024 from 10.7% in 2Q FY2023.

• Gross profit margin decreased as gross profit fell to ¥30,893 million from ¥36,026 million year-over-year.

• Ordinary profit was ¥5,421 million, down from ¥12,510 million in the same period last year.

• Cash and cash equivalents at period end increased to ¥58,155 million from ¥50,139 million a year earlier.

• Basic earnings per share for the period was ¥59.13, reflecting a 2-for-1 stock split.

Outlook and guidance

• FY2024 sales are forecast at ¥210,000 million, down 7.9% year-over-year, with operating and ordinary profit both projected at ¥17,500 million, a 31.0% decrease.

• Net income attributable to owners expected to be ¥12,500 million, a 35.5% decrease year-over-year.

• Planned dividends are ¥100 per share, reflecting a stock split effective October 1, 2024.

• Basic EPS forecasted at ¥206.60 for the full year, post stock split.

• Exchange rates assumed for FY2024 are 1USD = ¥148.8 and 1EUR = ¥162.0.