Tsubakimoto Chain (6371) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 FY2024 rose 5.0% year-over-year to ¥206,610 million, with bookings/orders received up 4.4% to ¥205,990 million.

• Operating income increased 10.5% year-over-year to ¥15,863 million, and net income attributable to owners of parent surged 25.0% to ¥14,952 million.

• Ordinary income rose 13.9% to ¥18,374 million.

• The full-year forecast was raised, reflecting strong Q3 results and improved business conditions.

• The company remains focused on its Mid-term Management Plan 2025, emphasizing capital cost awareness, manufacturing strength, and new business development.

Financial highlights

• Gross profit increased to ¥59,917 million from ¥56,858 million year-over-year.

• Q3 FY2024 operating income margin improved to 7.7% from 7.3% year-over-year.

• Net income per share for Q3 was 143.06 yen, adjusted for a 3-for-1 stock split.

• Total assets as of December 31, 2024, were ¥375,649 million, with net assets at ¥259,093 million and an equity ratio of 68.4%.

• Cash and cash equivalents at period end were ¥58,396 million, down ¥16,258 million from the previous fiscal year-end.

Outlook and guidance

• Full-year net sales forecast increased to ¥278,000 million, with operating income forecast at ¥22,200 million and net income at ¥21,000 million.

• Net income per share forecast for the full year is ¥201.86 post-stock split.

• Dividend per share for FY2024 is projected at 80.00 yen post-split, with a payout ratio of 39.6%.

• The outlook assumes exchange rates of 1 USD = 155 JPY and 1 Euro = 160 JPY for Q4.

• Segment earnings forecasts were raised, particularly in Mobility and Motion Control.