Toto (5332) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2025 were ¥355.7B (+4.7% YoY), with operating profit up 58% to ¥24.1B and profit attributable to owners at ¥16.9B (+1.6% YoY); both sales and profits increased year-over-year.

• Comprehensive income increased to ¥39.8B from ¥36.3B YoY, driven by strong foreign currency translation gains.

• Japan Housing Equipment saw increased sales but decreased profits due to higher procurement and HR costs.

• International Housing Equipment and New Domain businesses achieved increased sales and profits, with strong performance in the Americas and Taiwan, and a recovery in the semiconductor market.

Financial highlights

• First half net sales: ¥355.7B (+5% YoY); operating profit: ¥24.1B (+58% YoY); operating margin: 6.8%.

• Gross profit increased to ¥125.9B from ¥112.9B YoY, with improved operating profit margin.

• Total assets grew to ¥821.1B as of September 30, 2024, up from ¥790.3B at the previous fiscal year-end.

• Net cash provided by operating activities rose to ¥37.6B from ¥26.4B YoY.

• Cash and cash equivalents at period-end reached ¥112.5B, up from ¥101.4B a year earlier.

Outlook and guidance

• Full-year sales forecast revised to ¥730.0B (up 3.9% YoY, down ¥20B from previous plan); operating profit and ordinary profit projected at ¥48.0B.

• Profit attributable to owners forecast to decline 6.8% to ¥36.0B, with EPS expected at ¥212.20.

• Annual dividend forecast maintained at ¥100 per share.

• Second half expected to see increased sales but decreased profits.