Sodick Revises Earnings Forecast — Operating Profit Up 67%

Sodick Revises Earnings Forecast — Operating Profit Up 67%

Sodick (TSE:6143) raised its full-year earnings guidance for the fiscal year ending December 2026, citing robust demand in Greater China and favorable currency tailwinds.

The precision machine tool manufacturer lifted revenue expectations to JPY 97.0bn from JPY 88.5bn, a 9.6% increase. Operating profit surged to JPY 9.20bn from JPY 5.50bn, representing a 67.3% jump. Ordinary income (keijo rieki), a Japan-specific metric encompassing operating profit plus non-operating items, climbed to JPY 9.90bn from JPY 6.00bn. Net profit rose to JPY 7.40bn from JPY 5.10bn, while earnings per share increased to JPY 148.07 from JPY 100.70.

Management attributed the upward revision to strong sales of electrical discharge machines in Greater China driven by robust regional demand, combined with yen weakness relative to initial forecasts. Improved factory utilization rates from higher production volumes and second-quarter gains from favorable exchange rates and tariff refunds also contributed. While geopolitical risks in the Middle East and earthquake-related supply chain pressures persist, these headwinds were outweighed by positive operational momentum.

The revision signals accelerating profitability in Sodick’s core machine tool business, with operating margin expansion reflecting both volume growth and currency benefits. International investors should note that ordinary income differs materially from operating profit due to Japan-specific accounting conventions; the JPY 9.90bn ordinary income figure includes financial income and expenses beyond core operations. The earnings lift underscores Sodick’s exposure to cyclical Greater China industrial demand and currency fluctuations.

Source: Original filing (TDnet) | 日本語版

This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.