C.Uyemura & Co (4966) Q1 2025 earnings summary

Executive summary

• Q1 revenue rose to ¥19,980 million, up 14.1% year-over-year, with operating income up 85.5% to ¥4,507 million and net income up 97.7% to ¥3,749 million, driven by demand recovery in package substrate plating chemicals, favorable yen depreciation, and robust automotive electronics.

• Surface treatment materials and machinery segments outperformed the prior year, while plating processing faced challenges in Southeast Asia due to EV adoption and painted parts.

• Focus on high value-added product development and sales expansion contributed to significant profit growth.

Financial highlights

• Q1 revenue was ¥19,980 million (+14.1% YoY), operating income ¥4,507 million (+85.5% YoY), and net income ¥3,749 million (+97.7% YoY).

• Gross profit for Q1 was ¥7,865 million, up from ¥5,490 million year-over-year.

• Operating margin improved to 22.6% from 13.9% a year ago.

• Total assets at quarter-end were ¥117,870 million, with net assets of ¥94,678 million and an equity ratio of 80.3%.

• Comprehensive income for the quarter was ¥5,177 million, up 89.5% year-over-year.

Outlook and guidance

• Full-year revenue forecast at ¥81,150 million (+1.1% YoY), with operating income expected at ¥13,110 million and net income at ¥9,720 million.

• Segment guidance: surface treatment materials to grow, machinery to decline, plating processing to recover slightly.

• Sensitivity: every ¥1 JPY/USD change impacts annual revenue by ~¥350 million and operating income by ~¥50 million.

• Dividend forecast remains unchanged at ¥200 per share for the full year.