Tsubakimoto Chain (6371) Q2 2025 earnings summary

Executive summary

• Net sales rose 5.9% year-over-year to ¥136.36 billion, with operating income up 9.7% to ¥9.46 billion and net income up 37.2% to ¥10.01 billion, nearly matching forecasts despite volume struggles in Chain and Motion Control due to a weak yen.

• Orders received increased 4.9% year-over-year to ¥137,621 million, reflecting moderate global economic recovery and robust U.S. demand, despite stagnation in China.

• Overseas sales ratio increased to 66.5%, with notable growth in the Americas and Europe.

Financial highlights

• Ordinary income increased 8.3% to ¥11.23 billion; gross profit rose to ¥39,070 million from ¥36,905 million year-over-year.

• Basic earnings per share was ¥94.96, calculated assuming a 3-for-1 stock split.

• Total assets decreased to ¥369,002 million, and net assets to ¥252,419 million, with a capital adequacy ratio of 67.8%.

• Exchange rate movements (USD/JPY 152.77) contributed positively to results.

Outlook and guidance

• Full-year net sales forecasted at ¥274 billion (+2.7% YOY), with operating income expected to decline 5.9% to ¥20 billion and net income projected to rise 7.8% to ¥20 billion, including gains from policy shareholding sales.

• Full-year operating profit expected at ¥20,000 million (down 13.0% from previous forecast); EPS forecast at ¥192.25 post-split.

• Dividend forecast for FY2025 is ¥240 per share pre-split, with interim and year-end dividends of ¥99 and ¥141, respectively.

• All business segments anticipate sales growth, but profitability improvements are limited, especially in Materials Handling.