Rigaku (268A) Q4 2024 earnings summary

Executive summary

• Achieved double-digit revenue and profit growth in FY2024, with revenue up 13.5% year-over-year to JPY 90.6 billion, driven by strong demand in semiconductor and analytical instrument markets, improved supply chain, and favorable currency effects.

• Adjusted EBITDA rose 16% to JPY 23.4 billion, and adjusted profit increased 18.4% to JPY 15.4 billion, both exceeding guidance.

• Margin improvements were driven by favorable sales mix and pricing, offsetting higher R&D and SG&A expenses.

• Overseas growth was robust, especially in Asia, China, and the US, with increased sales to academia, government, and semiconductor manufacturers.

• Listed on the Tokyo Stock Exchange Prime Market in October 2024, following an IPO in October 2023.

Financial highlights

• Revenue: JPY 90.6 billion (+13.5% YoY); adjusted EBITDA: JPY 23.4 billion (+16% YoY, margin 25.9%).

• Adjusted operating profit: JPY 20.9 billion (+14.2% YoY, margin 23.1%); net profit: JPY 13.6 billion (+25% YoY); adjusted net profit: JPY 15.4 billion (+18% YoY).

• Gross profit margin improved to 61.0% (+2.6pts YoY); operating profit margin rose to 20.3% (+1.2pts YoY).

• Free cash flow: JPY 8.6 billion (down 9% YoY) due to increased CAPEX; cash and cash equivalents at year-end were JPY 27,992 million.

• Basic earnings per share increased to JPY 60.44; total assets grew to JPY 177,547 million.

Outlook and guidance

• FY2025 forecast: revenue JPY 97.7 billion (+7.8%), operating profit JPY 20.0 billion (+9.2%), adjusted EBITDA JPY 25.0 billion (margin 25.7%), and profit attributable to owners of parent JPY 14.1 billion.

• R&D ratio to rise to 8.1%; CAPEX ratio to increase to 8.7% due to major plant expansions.

• Dividend per share projected at JPY 18.8, maintaining a 30% payout ratio.

• Plans to expand production capacity, invest in R&D, and strengthen global sales channels to capture demand in advanced semiconductors and materials science.

• Expects continued growth despite global economic and geopolitical uncertainties.