Pacific Metals (5541) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2024, decreased by 10.2% year-over-year to ¥10,709 million, reflecting challenging market conditions and lower selling prices.

• Operating loss improved to ¥6,320 million from ¥8,236 million year-over-year, aided by a reversal of inventory write-downs.

• Loss attributable to owners of parent was ¥1,761 million, a slight improvement from ¥1,964 million loss in the prior year.

• The business environment remained harsh due to high raw material and fuel prices, volatile nickel prices, and weak demand in the stainless steel industry.

• Strategic initiatives included cost minimization, operational efficiency, and new business development in battery materials and beryllium.

Financial highlights

• Net sales: ¥10,709 million (down 10.2% year-over-year).

• Operating loss: ¥6,320 million (improved from ¥8,236 million loss year-over-year).

• Ordinary loss: ¥2,071 million (improved from ¥3,095 million loss year-over-year).

• Loss attributable to owners of parent: ¥1,761 million (improved from ¥1,964 million loss year-over-year).

• Comprehensive income: ¥(2,002) million, compared to ¥(2,590) million year-over-year.

Outlook and guidance

• Full-year net sales forecast revised down to ¥13,437 million, a 13.4% decrease year-over-year.

• Operating loss forecast at ¥7,623 million, ordinary loss at ¥2,732 million, and loss attributable to owners of parent at ¥2,538 million.

• Basic earnings per share forecast at ¥(130.15).

• Volume and production forecasts for ferronickel were revised downward due to continued weak demand.

• Market uncertainty remains high due to global economic and geopolitical factors.