OSG (6136) Q2 2025 earnings summary

Executive summary

• FY2025 first half net sales were ¥77,379 million, down 0.4% year-over-year; operating profit was ¥9,484 million, down 2.9% year-over-year; net profit attributable to owners was ¥6,483 million, a 10.2% decrease.

• Comprehensive income dropped 64.8% year-over-year to ¥4,638 million due to foreign currency translation losses.

• Operating profit margin recovered to 14.1% in Q2, with EBITDA for 1H at ¥16.1 billion (+1.0% YoY).

• Japan saw sales and profit growth, while the Americas and Europe/Africa experienced revenue declines due to economic slowdown and FX headwinds.

Financial highlights

• Net sales for 1H FY2025: ¥77,379 million (-0.4% YoY); operating profit: ¥9,484 million (-2.9% YoY); net profit: ¥6,483 million (-10.2% YoY).

• EPS for 1H was ¥76.94, nearly flat year-over-year; diluted EPS was ¥68.31.

• EBITDA margin improved to 20.8% (+0.3pts YoY); equity ratio at 65.8%.

• Cash and cash equivalents at period end were ¥39,937 million, down from ¥62,826 million a year earlier.

• Ordinary income decreased 8.8% to ¥9,915 million.

Outlook and guidance

• FY2025 full-year net sales forecast: ¥160,000 million (+2.9% YoY); operating profit: ¥21,000 million (+11.3% YoY); net profit: ¥14,500 million (+7.9% YoY).

• Operating profit margin expected at 13.1%; EPS forecasted at ¥172.08 (+15.5% YoY).

• Annual dividend forecast revised to ¥88.00 per share, including a ¥28.00 commemorative dividend.

• Exchange rate assumptions: 1 USD = ¥150, 1 EUR = ¥159.