Rinnai (5947) Q2 2025 earnings summary

Executive summary

• Net sales for the first two quarters of fiscal 2025 reached a record-high ¥212.1 billion, up 10.1% year-over-year, driven by market recovery, price revisions, and strong product sales in Japan and overseas.

• Operating income surged 107.5% year-over-year to ¥20.99 billion, with cost reductions and higher sales of high-value-added products offsetting increased raw material and energy costs.

• Net income attributable to owners rose 55.0% to ¥12.2 billion, with comprehensive income up 34.7% to ¥32.3 billion.

• Growth was supported by strong demand for water heaters and kitchen appliances, especially in Japan and the US.

Financial highlights

• Net sales: ¥212.12 billion (+10.1%); operating income: ¥20.99 billion (+107.5%); net income: ¥12.2 billion (+55.0%).

• Ordinary income rose 49.7% to ¥22.33 billion; gross profit increased to ¥71.62 billion from ¥56.99 billion year-over-year.

• Net income per share was ¥85.99, up from ¥54.38 in the prior year.

• Cash and cash equivalents at period-end were ¥132.47 billion, up ¥8.64 billion from March 2024.

• All major product categories saw sales growth: water heaters up 10.7%, kitchen appliances up 8.7%, others up 14.5%.

Outlook and guidance

• Full-year forecasts remain unchanged: net sales ¥450 billion (+4.6%), operating income ¥48 billion (+4.2%), net income ¥28.3 billion (+6.1%), and EPS ¥199.97.

• Dividend forecast raised to ¥80.00 per share for FY2025, up from ¥60.00 in FY2024.

• Continued focus on high-efficiency products, cost control, and monitoring market conditions.