OSG (6136) Q1 2025 earnings summary

Executive summary

• FY25 Q1 net sales rose 2.9% year-over-year to 37,777 million yen, but operating profit fell 5.3% and net profit dropped 23.9% due to economic slowdowns in Europe and the US.

• Japan and Asia saw revenue growth, while the Americas and Europe/Africa experienced declines, especially in automotive and South Korea.

• Taps and drills led product segment sales; diamond tools targeted for growth in the expanding lens industry.

• Comprehensive income dropped sharply to 114 million yen, down 97.9% year-over-year.

Financial highlights

• Net sales: 37,777 million yen (+2.9% YoY); operating profit: 3,884 million yen (-5.3% YoY); net profit: 2,609 million yen (-23.9% YoY).

• EPS decreased 15.3% YoY to 30.73 yen (diluted: 27.29 yen).

• EBITDA margin at 19.1%; ROA at 6.1%; ROE at 6.3%; equity ratio improved to 65.8%.

• Gross profit margin: 40.4%; operating profit margin: 10.3%; net profit margin: 6.9%.

• Total assets at quarter-end were 250,048 million yen, down from 257,256 million yen at the previous year-end.

Outlook and guidance

• FY25 consolidated net sales forecast at 160,000 million yen (+2.9% YoY); operating profit 21,000 million yen (+11.3% YoY); net profit 14,500 million yen (+7.9% YoY); EPS 170.75 yen (+14.6% YoY).

• Exchange rate assumptions: 1 USD = 150 yen, 1 Euro = 159 yen.

• Annual dividend forecast maintained at 60.00 yen per share.