Yamaha (7951) Q2 2025 earnings summary

Executive summary

• Revenue grew 3.9% year-over-year in 1H FY2025.3 to ¥228.1B, but net profit dropped 64.8% due to impairment losses and other expenses.

• Core operating profit rose 33.3% year-over-year, driven by strong audio equipment performance and favorable exchange rates.

• Operating profit declined 22.5% to ¥11.95B, and comprehensive income turned negative mainly due to foreign exchange and market value changes in securities.

• Impairment loss of ¥7.8B was recorded for piano production facilities in China and Indonesia.

• Full-year revenue and profit forecasts were revised downward due to further slowdown in the Chinese market.

Financial highlights

• 1H FY2025.3 revenue: ¥228.1B (+3.9% YoY); core operating profit: ¥20.4B (+33.3% YoY); net profit: ¥5.3B (-64.8% YoY).

• 2Q FY2025.3 revenue: ¥116.0B (+2.3% YoY); core operating profit: ¥11.2B (+27.2% YoY); net profit: -¥4.2B.

• Excluding exchange rate impact, 1H revenue declined 1.8% YoY.

• Full-year forecast: revenue ¥460.0B, core operating profit ¥37.0B, net profit ¥18.0B.

• Significant gain of ¥20.5B from sale of Yamaha Motor shares in September 2024.

Outlook and guidance

• Full-year revenue and profit guidance revised downward due to persistent weakness in China.

• Year-end dividend per share forecast remains at ¥13 post-stock split (¥39 pre-split).

• Basic earnings per share forecast is ¥36.82, reflecting the 3-for-1 stock split.

• Currency sensitivity: every ¥1 change in USD impacts revenue by ¥930M and profit by ¥110M.