Rigaku (268A) Q2 2025 earnings summary

Executive summary

• Revenue for 1H FY2025 declined 4.7% year-on-year to ¥40,756 million, mainly due to lower sales in multipurpose analytical instruments and EUV components, despite strong semiconductor process control instruments growth.

• Adjusted EBITDA and adjusted profit decreased, with adjusted EBITDA margin dropping from 26% to about 20% year-on-year, impacted by continued R&D and commercial infrastructure investments.

• Comprehensive income and profit attributable to owners of parent dropped sharply, with net profit for 1H FY2025 at ¥3.8Bn, down 41.9% year-on-year.

• The full-year outlook was revised down due to US policy impacts and weaker EUV multilayer mirror demand, but mid- to long-term growth strategies remain unchanged.

Financial highlights

• 1H FY2025 revenue: ¥40,756 million, down 4.7% year-on-year; adjusted EBITDA: ¥8.1Bn, down 27.5%; adjusted net profit: ¥4.4Bn, down 39.8%.

• Gross margin declined to 55.8% from 57.1% year-on-year; adjusted EBITDA margin fell to 19.8% from 26.0%.

• Free cash flow for 1H FY2025 was JPY 2.8Bn, down 42.6% year-on-year.

• SG&A savings of JPY 1.1 billion achieved through cost controls in human resources, advertising, and travel.

• Cash and cash equivalents increased to ¥28,959 million as of June 30, 2025.

Outlook and guidance

• FY2025 full-year revenue forecast is ¥94,117 million, up 3.8% year-on-year, with operating profit expected at ¥18,145 million (down 1.2%) and profit attributable to owners of parent at ¥12,307 million (down 9.6%).

• Adjusted EBITDA expected at JPY 23.1Bn and adjusted net profit at JPY 13.6Bn.

• Semiconductor process control instruments revenue forecast unchanged at +20% YoY; multipurpose analytical instruments aiming for double-digit growth excluding China and US slowdowns.

• Fourth quarter expected to see significant revenue growth, mainly from semiconductor process control instruments.

• Dividend per share maintained at JPY 18.8; share repurchase of up to JPY 4.0Bn or 6 million shares planned.