OSG (6136) Q2 2024 earnings summary

Executive summary

• Achieved record-high first-half sales in FY2024, driven by strong demand in the aircraft industry in Europe and the Americas, with a slight profit increase despite higher labor costs.

• Net sales rose 10.0% year-over-year to ¥77,667 million for the FY2024 semi-annual period.

• Operating income increased 2.9% to ¥9,765 million, while net income attributable to owners of parent grew 9.5% to ¥7,217 million.

• Overseas sales ratio reached 68.9%, reflecting robust international expansion.

• Comprehensive income surged 40.0% to ¥13,194 million compared to the same period last year.

Financial highlights

• Net sales for FY24-1H rose 10.0% year-over-year to ¥77,667 million; operating profit increased 2.9% to ¥9,765 million.

• Net profit attributable to OSG grew 9.5% to ¥7,217 million; EPS up 12.5% to ¥77.40.

• EBITDA for 1H reached ¥15.9 billion with a margin of 20.5%; free cash flow was ¥7.2 billion.

• Gross profit increased to ¥31,870 million from ¥28,936 million year-over-year.

• Ordinary income rose 6.9% to ¥10,868 million; net cash provided by operating activities more than doubled to ¥15,517 million.

Outlook and guidance

• FY2024 consolidated net sales forecast at ¥160,000 million (+3.6% YoY); operating profit projected at ¥23,000 million (+16.2%).

• Net income attributable to owners expected at ¥15,500 million (+8.3%); EPS forecast at ¥171.25 (+13.9%).

• Annual dividend forecast maintained at ¥60.00 per share.

• Exchange rate assumptions: 1 USD = ¥138, 1 Euro = ¥150.