The Japan Steel Works (5631) Q4 2024 earnings summary

Executive summary

• FY2024 net sales were ¥248.6B (down 1.6% YoY), but operating profit rose 26.7% to ¥22.8B and profit attributable to owners increased 25.8% to ¥17.9B, driven by production and price improvements.

• Industrial Machinery segment saw declines in orders, sales, and profit, while Material and Engineering segment experienced growth in net sales and profit.

• Comprehensive income for the year was ¥21.5B, a 3.9% decrease from the previous year.

• Strategic investments in production capacity, global expansion, and R&D are ongoing to support medium-term growth.

Financial highlights

• FY2024 orders received: ¥310.2B (down ¥24.7B YoY); net sales: ¥248.6B (down ¥4.0B YoY); operating profit: ¥22.8B (up ¥4.8B YoY); profit attributable to owners: ¥17.9B (up ¥3.7B YoY); EPS: ¥244.03; dividend per share: ¥86 (up ¥27 YoY).

• EBITDA: ¥30.7B (up ¥5.0B YoY, margin 12.4%).

• Gross profit increased to ¥61.0B from ¥56.8B YoY, with gross margin improving.

• Operating profit margin rose to 9.2% from 7.1% YoY.

• Cash and cash equivalents at year-end decreased to ¥75.1B from ¥96.9B.

Outlook and guidance

• FY2025 forecast: net sales ¥290.0B (up 16.7% YoY), operating profit ¥24.5B (up 7.3% YoY), profit attributable to owners ¥18.5B, EPS ¥251.34, dividend per share ¥88.

• Orders received expected to decrease slightly to ¥300.0B, but remain at a high level.

• Minimal impact expected from U.S. tariff policy; short-term order delays in plastic machinery noted.