TDK (6762) Q2 2025 earnings summary

Executive summary

• Net sales for 1H FY2025 rose 2.8% year-over-year to JPY 1,089.5 billion, driven by ICT and HDD market recovery and yen depreciation, offsetting weakness in industrial and automotive markets.

• Operating profit surged 55.8% to JPY 133.3 billion, with net profit up 95.1% to JPY 105.7 billion, both record highs for the first half.

• Growth in small capacity batteries, HDD components, and sensors to ICT market offset declines in BEV-related sales and industrial equipment markets.

Financial highlights

• H1 FY2025 net sales: JPY 1,089.5 billion (+2.8% YoY); operating profit: JPY 133.3 billion (+55.8% YoY); net profit: JPY 105.7 billion (+95.1% YoY).

• Operating profit margin improved to 12.2% from 8.1% YoY.

• Basic EPS for 1H FY2025 was JPY 55.72, reflecting a 5-for-1 share split.

• Free cash flow for six months: JPY 105.9 billion; cash and cash equivalents at period end: JPY 696.7 billion.

• Operating cash flow: JPY 205.9 billion; CapEx: JPY 93.5 billion.

Outlook and guidance

• Full-year FY2025 net sales forecast raised to JPY 2,120 billion, operating profit to JPY 220 billion, and net profit to JPY 160 billion.

• Free cash flow guidance raised to JPY 120 billion for the full year.

• Annual dividend forecast raised to JPY 28.00 per share, with interim dividend revised to 70 yen and year-end forecast to 14 yen post-split.

• One-time restructuring costs of about JPY 10 billion expected in FY2025.