Rigaku (268A) Q3 2025 earnings summary

Executive summary

• 3Q FY2025 revenue declined 4.9% year-over-year to ¥59,496 million, with significant declines in adjusted EBITDA, operating profit, and net profit due to lower sales, product mix, and continued strategic investments.

• Performance bottomed out in 3Q, with a strong recovery and high-margin project concentration expected in 4Q to support full-year guidance.

• Multipurpose analytical instruments revenue fell 5.3% YoY, mainly due to lower sales in Japan and China, while overseas revenue (excluding China) rose 10.6% YoY.

• Semiconductor process control instruments revenue decreased 5.6% YoY, but sales for semiconductor memories grew significantly due to strong AI-related demand.

• Components and services revenue fell 3.7% YoY, though service revenue increased due to higher pricing and expanded maintenance contracts.

Financial highlights

• 3Q cumulative revenue: JPY 59.5bn, down 4.9% YoY; adjusted EBITDA: JPY 10.3bn, down 34.0% YoY; adjusted net profit: JPY 5.3bn, down 48.6% YoY.

• Gross margin declined to 54.6% from 57.8% YoY; operating profit margin fell to 11.0% from 18.9% YoY.

• Free cash flow dropped sharply to JPY 204mn from JPY 4.9bn YoY.

• Basic earnings per share for the period was ¥18.81, compared to ¥39.91 in the prior year.

• Total assets as of September 30, 2025, were ¥173,925 million, with total equity at ¥81,581 million and an equity ratio of 46.9%.

Outlook and guidance

• 4Q is expected to see a strong rebound, with high-margin semiconductor projects and significant sales growth driving progress toward full-year targets.

• FY2025 revenue forecast revised to JPY 94.1bn (up 3.8% YoY), with adjusted EBITDA margin at 24.5% and adjusted net profit margin at 14.5%.

• Full-year 2025 revenue is forecast at ¥94,117 million (up 3.8% YoY), with operating profit of ¥18,145 million (down 1.2%), and profit attributable to owners of parent of ¥12,307 million (down 9.6%).

• Basic earnings per share for the full year is projected at ¥54.04.

• Management expects to meet revised full-year plan, with recovery in Multipurpose Analytical Instruments and strong 4Q in Semiconductor Process Control Instruments.