Organo (6368) Q2 2025 earnings summary

Executive summary

• Orders received in the first half rose 21.8% year-over-year to ¥92.8 billion, with strong growth in overseas large-scale electronics projects, especially in Taiwan and China.

• Net sales increased 13.5% year-over-year to ¥74.3 billion, driven by robust performance in Plant and Service Solutions, particularly overseas.

• Operating profit surged 46.1% year-over-year to ¥11.5 billion, with profit margin improvement in both Plant and Service Solutions.

• Profit attributable to owners of parent rose 46.9% YoY to ¥8.1 billion.

• The company executed digital transformation initiatives and expanded production and delivery capacities.

Financial highlights

• Gross profit for the first half reached ¥23.1 billion (+27.7% YoY), with gross margin improving to 31.1%.

• SG&A expenses increased 13.5% YoY to ¥11.7 billion, but were offset by higher profit margins.

• Basic earnings per share: ¥176.97 (up from ¥120.64 YoY).

• Comprehensive income: ¥9,050 million (+36.8% YoY).

• Total assets: ¥180,814 million; Net assets: ¥108,490 million; Equity-to-asset ratio: 59.9%.

Outlook and guidance

• Full-year forecasts were revised upward, with orders expected at ¥170 billion (+17.7% YoY), net sales at ¥165 billion (+9.7% YoY), and operating profit at ¥28 billion (+24.2% YoY).

• Profit attributable to owners of parent for the full year is forecast at ¥21.5 billion (+24.2% YoY).

• Dividend forecast for FY03/2025 was raised to ¥142 per share, maintaining a payout ratio above 30%.

• Full-year ROE is forecast at 19.6%, up 1.2 points year-over-year.

• Orders and sales are expected to remain strong in the second half, especially for large-scale semiconductor projects overseas.