Rigaku (268A) Q1 2025 earnings summary

Executive summary

• Revenue grew 5.5% year-over-year in Q1 FY2025 to ¥20,614 million, driven by strong performance in Semiconductor Process Control Instruments, while other segments declined.

• Adjusted EBITDA and profit declined year-over-year due to increased SG&A and R&D investments, with operating profit down 10.3% and net profit down 12.3%.

• Comprehensive income dropped sharply to ¥45 million from ¥3,776 million a year earlier, mainly due to negative exchange differences.

• Revenue pipeline remains robust (+20% YoY), with conversion timing key for future performance.

• Limited direct impact from Trump policies in Q1, but ongoing monitoring of potential future effects.

Financial highlights

• Total revenue: ¥20,614 million (+5.5% YoY); gross profit: ¥11,590 million (+9.3% YoY); gross margin: 56.2% (+1.9pts YoY).

• Operating profit: ¥2,835 million (-10.3% YoY); operating margin: 13.8% (-2.4pts YoY).

• Net profit: ¥1,918 million (-12.3% YoY); adjusted net profit: ¥2,265 million (-13.0% YoY); net margin: 9.3%.

• Adjusted EBITDA: ¥4,030 million (-7.5% YoY); margin: 19.6% (-2.7pts YoY).

• Free cash flow: ¥489 million (-69.5% YoY), impacted by timing differences and higher investments.

Outlook and guidance

• Full-year 2025 revenue forecast is ¥97,736 million (+7.8% YoY), with operating profit projected at ¥20,049 million (+9.2%) and net profit at ¥14,056 million (+3.2%).

• Basic earnings per share for the full year is forecast at ¥62.40; annual dividend forecast is ¥18.80 per share.

• Revenue and profit growth in Q1 FY2025 aligned with annual budget and medium-term plan.

• Focus on pipeline-to-revenue conversion and monitoring risk of order delays amid market uncertainty, especially in Multipurpose Analytical Instruments.

• Continued emphasis on technology development in semiconductors, with potential mid-term upside including China.