TDK (6762) Q3 2025 earnings summary

Executive summary

• Net sales and operating profit reached record highs for the first nine months, driven by strong ICT and HDD market demand and yen depreciation, while Europe and China slowed and automotive and industrial markets lagged.

• Operating profit increased 34.3% year-over-year to JPY 209.1 billion, and net profit attributable to owners surged 34.6% to JPY 160.9 billion.

• Growth in the automotive market decelerated due to BEV slowdown; industrial equipment market sales declined.

• Robust demand in ICT (smartphones, PCs, data centers) offset sluggish industrial and automotive markets.

Financial highlights

• Net sales for the nine months: JPY 1,670.5 billion, up 3.2% year-on-year; Q3 net sales: JPY 581.0 billion, up 3.9% year-on-year.

• Operating profit: JPY 209.1 billion, up 34.3% year-on-year; Q3 operating profit: JPY 75.8 billion, up 8% year-on-year.

• Net profit: JPY 160.9 billion, up 34.6% year-on-year; EPS: JPY 84.79 (post-share split basis).

• Gross margin improved to 32.9% from 29.4% year-over-year.

• Forex impact: Yen depreciation contributed JPY 85.6 billion to net sales and JPY 16.8 billion to operating profit year-to-date.

Outlook and guidance

• FY2025 net sales forecast raised to JPY 2,180 billion, up 3.6% year-on-year; operating profit projected at JPY 220 billion, up 27.2% year-on-year.

• Net profit forecast at JPY 160 billion; EPS: JPY 84.33; annual dividend: JPY 28.00 (post-share split basis).

• Q4 sales expected to decline across all segments, especially Energy Application Products (down 17–20% quarter-on-quarter), due to seasonality and weak auto/industrial demand.

• Free cash flow projection for the full year increased to JPY 200 billion.

• One-off expenses for FY2025 revised up to JPY 18 billion, mainly for restructuring and asset write-down risks.