Shimadzu (7701) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2024 reached a record-high ¥251.2 billion, up 4.9% year-over-year, driven by new product launches and overseas expansion, despite global economic uncertainty and inflationary pressures.

• Operating income declined 7% to ¥30.2 billion due to increased growth investments and production suppression.

• Orders reached ¥268.0 billion, up 8% year-over-year, with a growing order backlog of ¥246.0 billion as of September 30, 2024.

• Organizational restructuring was implemented to enhance customer focus, alongside strategic acquisitions and overseas expansions.

• Q2 delivered record-high sales and flat operating income, with value-added appeals offsetting growth investment costs.

Financial highlights

• Net sales: ¥251.2 billion (+4.9% YoY); operating income: ¥30.2 billion (–7% YoY); net income: ¥21.3 billion (–19.7% YoY); ordinary income: ¥28.4 billion (–20.8% YoY).

• Basic earnings per share: ¥72.38, down from ¥90.09 YoY; comprehensive income: ¥12.3 billion, down 68.8%.

• R&D expenses rose 32% to ¥13.5 billion; CAPEX was ¥11.1 billion (–8% YoY); depreciation and amortization: ¥9.7 billion (+5.4%).

• Foreign exchange had a positive impact on sales and operating income but a negative impact on ordinary and net income.

• Cash and deposits decreased by ¥8.2 billion; net cash provided by operating activities was ¥28.2 billion.

Outlook and guidance

• Full-year FY2024 sales forecast revised upward to ¥540.0 billion (+5% YoY); operating income projected at ¥76.0 billion (+4% YoY); annual dividend forecast raised to ¥62.00 per share.

• Continued growth investments: +¥6.5 billion in R&D, +¥8.0 billion in human capital.

• Segment guidance: AMI to expand in pharma and green sectors; IM to grow TMP sales for semiconductors; AE to realize early sales of defense backorders.