TOWA (6315) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2024, rose 22.6% year-over-year to ¥39.25 billion, driven by strong shipments to China and increased sales of compression equipment and molds.

• Operating profit surged 60.0% year-over-year to ¥6.52 billion, with ordinary profit up 64.0% to ¥7.08 billion and net profit attributable to owners up 65.5% to ¥5.15 billion.

• Orders declined 7.6% year-over-year to ¥37.19 billion, with a backlog of ¥29.37 billion at period end, reflecting weak investment in consumer goods and memory.

• Profits at all stages increased significantly year-over-year, driven by improved product mix and higher net sales.

• Orders and net sales remained steady in Asia, but investment appetite in China decreased due to economic and policy uncertainties.

Financial highlights

• Gross profit increased to ¥14.57 billion from ¥10.95 billion year-over-year, with gross margin improvement.

• Net sales for FY2024 3Q reached ¥39.25 billion, up 22.6% year-over-year.

• Operating profit rose 60.0% to ¥6.52 billion, with an operating margin of 16.6% (+3.9pt year-over-year).

• Ordinary profit increased 64.0% to ¥7.08 billion; net profit attributable to owners was ¥5.15 billion, up 65.5%.

• Basic earnings per share for the nine months was ¥68.70, calculated post-stock split.

Outlook and guidance

• Full-year net sales forecast revised to ¥54.0 billion (up 7.0% year-over-year), with operating profit of ¥9.2 billion (up 6.2%) and net profit expected at ¥7.87 billion (up 22.1%).

• Sales and profits are expected to decrease from previous forecasts due to delayed recovery in consumer and memory semiconductor demand, but both are projected to reach record highs versus the prior year.

• Recovery in consumer goods and memory semiconductor investment delayed; customer investment in China continues to decline.

• Gains from the planned sale of investment securities in Q4 FY2024 are included in the forecast.

• Short-term market conditions not expected to improve, but advanced packaging and development remain steady.