［Delayed］Supplementary Information to Consolidated Financial Results
(January 1, 2025 - June 30, 2025)ISEKI & CO., LTD.
August 8, 2025
Index
1. | Outline of Financial Results for the Second Quarter Fiscal Year Ending December 31, 2025 |
2. | Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2025 |
Key Points
Higher sales and operating income (6 months (Jan. to Jun.), year on year)
As with 1Q, significant growth for domestic sales and stable performance for overseas
(mainly in Europe) in 2Q
Domestic Sales: | Farmers' purchasing appetite remained strong due to rising rice prices Last-minute demand for agricultural machinery ahead of the price revision in July contributed to a significant increase in net sales for agricultural machinery in 2Q (Apr. to Jun.), following the increase in sales of farming implements in 1Q (Jan. to Mar.) |
Overseas Sales: | Although the sales declined in Europe due to foreign exchange fluctuations, sales continued to grow on a local currency basis, thanks to the stable performance in France and the consolidation of PTC Limited in the UK For North America, sales declined due to the continued weak market conditions. For Asia, sales increased in Korea and Indonesia |
Operating Income: | Higher operating income mainly from the increase in domestic sales |
Ordinary Income: | Increase of ordinary income has partially slowed down due to foreign exchange losses related to receivables and payables |
Profit: | Profit increased significantly driven by the sale of non-current assets and absence of impairment losses with structural reforms in the same period of previous fiscal year |
Project Z: | Expected effects for 2025 have progressed as planned, measures are currently being implemented toward 2027 |
Upward Revision to the Full-year Forecast
Compared to the Full-year Forecast: | Net sales +¥5.0 billion, Operating income: +¥0.9 billion, Profit: +¥0.5 billion |
1. | Outline of Financial Results for the Second Quarter Fiscal Year Ending December 31, 2025 |
2. | Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2025 |
Outline of Consolidated Business Performance
(JPY bn, unless otherwise noted) (January 1, 2025 to June 30, 2025) | FY2022/12 | FY2023/12 | FY2024/12 | FY2025/12 | |||
2Q Actual | 2Q Actual | 2Q Actual | 2Q Actual | YoY Change | |||
Net Sales | 86.7 | 92.3 | 91.1 | 100.8 | +9.7 | ||
(Domestic) | 57.5 | 58.2 | 54.8 | 65.8 | +10.9 | ||
(Overseas) | 29.1 | 34.1 | 36.2 | 35.0 | -1.2 | ||
Gross Profit | 25.1 | 27.2 | 26.9 | 29.3 | +2.4 | ||
Gross Profit Margin (%) | 29.0% | 29.5% | 29.5% | 29.1% | -0.4% | ||
Operating Income | 2.5 | 2.7 | 2.2 | 4.3 | +2.1 | ||
Operating Margin (%) | 3.0% | 3.0% | 2.4% | 4.3% | +1.9% | ||
Ordinary Income | 3.3 | 3.0 | 2.4 | 3.7 | +1.3 | ||
Profit (Loss) Attributable to Owners of Parent | 2.5 | 1.9 | (6) | 3.2 | +3.9 | ||
Average * Exchange | US$ | 117.4 | 134.5 | 151.7 | 149.7 | -2.1 | |
Rate (JPY) | Euro | 141.5 | 156.8 | 172.1 | 162.5 | -9.6 | |
*From 2025, the PL conversion rate for overseas subsidiaries has been changed to the average rate during the fiscal year. (Previously, the rate at the end of each fiscal year was used). 5
Trends in Consolidated Financial Results (Quarterly)
(Net sales: JPY bn)
54.6
47.9
45.8
46.5
43.9
47.1
46.1
38.7
2.7
38.6
41.2
40.5
36.9
37.4
39.8
2.9
1.6
1.0
1.4
1.3
0.5
0.8
0.7
0.8
0.3
(0.2)
(1.3)
(1.1)
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Overseas net sales
(Operating income: JPY bn)
5.0
4.0
3.0
2.0
1.0
0.0
-1.0
-2.0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY2022 FY2023 FY2024 FY2025
Main factors of YoY changes
・Farmers' purchasing appetite
remained strong due to rising rice prices
・Following the increase in sales of
farming implements in 1Q, net sales
increased significantly for agricultural machinery in 2Q
Agr
Domestic Sales(JPY bn) | FY2022/12 | FY2023/12 | FY2024/12 | FY2025/12 | |||
2Q Actual | 2Q Actual | 2Q Actual | 2Q Actual | YoY Change | |||
Agricultural Machinery Related | icultural Machinery | Cultivating & Mowing Machinery | 14.3 | 12.9 | 12.3 | 14.6 | +2.3 |
Planting Machinery | 5.5 | 5.1 | 4.4 | 5.6 | +1.2 | ||
Harvesting & Processing Machinery | 5.4 | 5.7 | 4.4 | 7.3 | +2.9 | ||
Subtotal | 25.3 | 23.8 | 21.2 | 27.7 | +6.5 | ||
Farming Implements | 10.9 | 11.0 | 11.2 | 14.1 | +2.9 | ||
Spare Parts | 7.2 | 7.5 | 7.6 | 8.3 | +0.6 | ||
Repair Fees | 2.8 | 2.8 | 2.9 | 3.0 | +0.1 | ||
Subtotal | 21.0 | 21.4 | 21.7 | 25.5 | +3.8 | ||
Total | 46.3 | 45.2 | 42.9 | 53.3 | +10.3 | ||
Construction of Facilities | 1.2 | 2.4 | 1.3 | 2.3 | +1.0 | ||
Others | 9.8 | 10.5 | 10.5 | 10.1 | -0.3 | ||
Total | 57.5 | 58.2 | 54.8 | 65.8 | +10.9 | ||
Ratio of Revenues from Farming Implements and Maintenance | 36.5% | 36.8% | 39.7% | 38.9% | -0.8% | ||
Agricultural machinery: Sales increased significantly due to |
the last-minute demand ahead of the price revision in July Farming implements/maintenance revenues: (Spare parts/Repair fees) Sales increased steadily as a stable |
source of revenue Construction of facilities: |
Sales increased due to the completion of large facility projects |
Main factors of YoY changes
・Steady performance in Europe,
higher sales in Asia
・Weak in North America
Sales increased mainly in Korea and Indonesia
Overseas Sales(JPY bn, %) | FY2022/12 | FY2023/12 | FY2024/12 | FY2025/12 | |
2Q Actual | 2Q Actual | 2Q Actual | 2Q Actual | YoY Change | |
Europe | 14.2 | 21.0 | 26.2 | 25.1 | -1.0 |
North America | 8.4 | 7.4 | 6.3 | 5.5 | -0.7 |
Asia | 6.1 | 4.6 | 3.1 | 4.0 | +0.8 |
Others | 0.3 | 0.9 | 0.5 | 0.2 | -0.2 |
Total | 29.1 | 34.1 | 36.2 | 35.0 | -1.2 |
Overseas sales ratio | 33.6% | 36.9% | 39.8% | 34.7% | -5.1% |
Europe: |
Sales declined in Europe due to foreign exchange fluctuations, but sales continued to grow on a local currency basis, thanks to the stable performance in France and the consolidation of PTC Limited in the UK |
North America: |
Sales declined as the compact tractors market remained weak and the impact of tariffs is currently limited |
Asia: |
Regarding the Impact of U.S. Tariffs
・ | Since tariff payments will be made by the importer (OEM customer), there is no direct cash outflow from ISEKI |
・ | A sufficient amount of local inventory (held by the OEM partner and ISEKI, covering 10 months or more) had cleared customs before the tariff hike |
・ | Already reached an agreement of having the OEM partner to cover up to 10% of the tariffs on U.S. imports |
・ | Sales to North America accounted for 6.7% of our consolidated net sales (Actual results for 2024), and due to relatively low margins in OEM supply, the impact on profit is limited |
・ | Demand trends due to the impact of tariffs remain uncertain, and we are closely monitoring the effects of rising local retail prices |
・ | In the mid to long term, we plan to consider expanding local sourcing and assembly |
Operating Income
・ | Higher operating income mainly from the increase in domestic sales |
(JPY bn, %) | FY2024/12 | FY2025/12 | YoY Change | |
2Q Actual | 2Q Actual | |||
Net Sales | 91.1 | 100.8 | +9.7 | |
Gross Profit | 26.9 | 29.3 | +2.4 | |
Gross Profit Margin | 29.5% | 29.1% | -0.4% | |
SG&A Expenses | 24.7 | 25.0 | +0.3 | |
Personnel Expenses | 13.9 | 14.1 | +0.2 | |
Other Expenses | 10.7 | 10.8 | +0.0 | |
Operating Income | 2.2 | 4.3 | +2.1 | |
Operating Margin | 2.4% | 4.3% | +1.9% | |
[Breakdown of YoY change (¥2.1 billion)]
+2.2 | +1.1 | -0.9 | -0.2 | -0.1 |
2.2
Higher Sales | Price | Production costs | FOREX Fluctuations | Others |
FY2024/12 2Q
[Effect of FOREX fluctuations
(Reference)
[Project Z
4.3
FY2025/12 2Q
Net Sales | Cost of Sales | SG&A Expenses | Operating Income |
(1.4) | 0.9 | 0.3 | (0.2) |
(impact of income/losses, JPY bn)]
(impact of income/losses, JPY bn)]
Operating Income | 2Q Actual | Full-year Forecast |
Effect | 0.5 | 1.5 |
Temporary * expenses | (0.4) | (0.8) |
*Expenses for transfer of production,
consolidation of sales companies, and others
Ordinary Income & Profit
・ | Increase of ordinary income has partially slowed down due to foreign exchange losses related to receivables and payables |
・ | Profit increased significantly driven by gain on the sale of non-current assets and absence of impairment losses with structural reforms in the same period of previous fiscal year |
(JPY bn) | FY2022/12 | FY2023/12 | FY2024/12 | FY2025/12 | YoY Change |
2Q Actual | 2Q Actual | 2Q Actual | 2Q Actual | ||
Operating Income | 2.5 | 2.7 | 2.2 | 4.3 | +2.1 |
Financial income (expenses), net | (0.3) | (0.8) | (0.7) | (0.8) | -0.0 |
Other non-operating income (expenses), net | 1.0 | 1.1 | 1.0 | 0.2 | -0.7 |
Ordinary Income | 3.3 | 3.0 | 2.4 | 3.7 | +1.3 |
Extraordinary Income | 0.0 | 0.0 | 0.0 | 1.1 | +1.0 |
Extraordinary Losses | (0.2) | (0.1) | (2.3) | (0.1) | +2.1 |
Income Before Income Taxes | 3.1 | 2.9 | 0.2 | 4.7 | +4.5 |
Income Taxes-Deferred | (0.6) | (0.9) | (0.8) | (1.4) | -0.6 |
Profit (loss) Attributable to Owners of Parent | 2.5 | 1.9 | (0.6) | 3.2 | +3.9 |
[Breakdown of major YoY change in Other
non-operating income (expenses), net (JPY bn)
Other non-operating income (expenses), net | |
Foreign exchange gains (losses) | (0.6) |
[Breakdown of major YoY change in extraordinary income/losses (JPY bn)]
Extraordinary income/losses (Positive: profit improvement) | |
Gain on sale of non-current assets | 1.0 |
Decrease in impairment losses (Recorded in the same period of previous fiscal year due to structural reforms) | 2.1 |
Balance Sheet
・ Strong performance in domestic sales led to a significant decrease in inventories (largest year on year change in the past 10 years)
・ Interest-bearing liabilities also decreased significantly
(JPY bn) | As of Jun. 30, 2024 | As of Dec. 31, 2024 | As of Jun. 30, 2025 | YoY Change | Change from Dec. 31, 2024 | As of Jun. 30, 2024 | As of Dec. 31, 2024 | As of Jun. 30, 2025 | YoY Change | Change from Dec. 31, 2024 | |
Cash & Deposits | 10.8 | 8.2 | 9.9 | -0.8 | +1.7 | Accounts Payable-Trade | 28.2 | 25.2 | 25.6 | -2.5 | +0.4 |
Accounts Receivable-Trade | 37.8 | 25.4 | 40.8 | +2.9 | +15.4 | Interest-bearing Liabilities | 84.4 | 75.4 | 73.0 | -11.3 | -2.3 |
Inventories | 70.9 | 66.9 | 56.7 | -14.1 | -10.1 | (Loans Payable) | 76.8 | 68.1 | 66.0 | -10.8 | -2.0 |
Other Current Assets | 3.6 | 5.0 | 4.0 | +0.3 | -1.0 | Accounts Payable-Other | 11.9 | 10.2 | 12.5 | +0.5 | +2.3 |
Other Liabilities | 24.4 | 23.3 | 24.8 | +0.4 | +1.5 | ||||||
Total Current Assets | 123.3 | 105.6 | 111.6 | -11.7 | +6.0 | Total Liabilities | 149.0 | 134.2 | 136.2 | -12.8 | +1.9 |
Property, Plant and Equipment | 82.0 | 81.3 | 80.6 | -1.3 | -0.6 | Net assets | 75.1 | 71.8 | 75.3 | +0.1 | +3.4 |
Intangible Assets | 2.7 | 2.9 | 2.8 | +0.1 | -0.0 | ||||||
Investments and Other Assets | 16.0 | 16.1 | 16.3 | +0.2 | +0.1 | (Retained Earnings) | 19.4 | 16.6 | 19.6 | +0.2 | +3.0 |
Total Non-current Assets | 100.8 | 100.5 | 99.8 | -0.9 | -0.6 | ||||||
Total Assets | 224.2 | 206.1 | 211.5 | -12.6 | +5.4 | Total Liabilities and Net Assets | 224.2 | 206.1 | 211.5 | -12.6 | +5.4 12 |
Equity Ratio / Interest-bearing Liabilities
・ | Ongoing decrease in interest-bearing liabilities has led the D/E ratio to drop below 1.0. |
33.3
32.2
33.6
31.2
84.4
77.9
73.0
67.1
Equity Ratio (%)
Balance of Interest-bearing Liabilities (JPY bn)
100.0 35
30
80.0 25
20
15
60.0 10
5
Jun. 2022 | Jun. 2023 | Jun. 2024 | Jun. 2025 | |
Loans payable, corporate bonds | 60.1 | 71.0 | 76.8 | 66.0 |
Lease obligations | 6.9 | 6.9 | 7.5 | 7.0 |
Interest-bearing liabilities Total | 67.1 | 77.9 | 84.4 | 73.0 |
D/E ratio | 0.97 | 1.04 | 1.12 | 0.97 |
40.0 0
Cash Flows
・ Cash flows from operating activities improved significantly due to increased profits and a decrease in inventories. The sale of non-current assets led to a further improvement in free cash flow
(JPY bn) | FY2022/12 | FY2023/12 | FY2024/12 | FY2025/12 | YoY Change | |
2Q Actual | 2Q Actual | 2Q Actual | 2Q Actual | |||
Cash flows from operating activities | (2.0) | (7.5) | (1.1) | 4.5 | +5.6 | |
Profit before income taxes | 3.1 | 2.9 | 0.2 | 4.7 | +4.5 | |
Depreciation | 3.0 | 2.8 | 2.7 | 2.5 | -0.1 | |
Impairment losses | 0.1 | 0.0 | 2.2 | 0.0 | -2.2 | |
Decrease (increase) in trade receivables | (12.2) | (10.2) | (10.3) | (16.3) | -5.9 | |
Decrease (increase) in inventories | (2.2) | (2.5) | 4.0 | 11.1 | +7.1 | |
Increase (decrease) in trade payables | 4.4 | (3.2) | (14.2) | 0.8 | +15.1 | |
Increase (decrease) in trade payables | (0.2) | (0.1) | 11.4 | 2.2 | -9.2 | |
Other, net | 1.9 | 2.8 | 2.8 | (0.8) | -3.6 | |
Cash flows from investing activities | (3.3) | (3.0) | (3.1) | (0.7) | +2.4 | |
Purchase of property, plant and equipment and intangible assets | (3.1) | (3.0) | (3.1) | (2.4) | +0.7 | |
Proceeds from sale of property, plant and equipment and intangible assets | 0.2 | 0.1 | 0.3 | 1.7 | +1.4 | |
Free Cash Flow | (5.4) | (10.6) | (4.2) | 3.7 | +8.0 | |
Cash flows from financing activities | 3.2 | 8.0 | 4.9 | (3.0) | -7.9 | |
Net increase (decrease) in cash and cash equivalents | (1.8) | (2.1) | 0.7 | 1.0 | +0.3 | |
Progress of Project Z
・ Expected effects for 2025 have progressed as planned
・ Major measures of the fundamental structural reform have generally progressed as planned
・ Regarding the growth strategy, we have implemented stronger collaboration among consolidated subsidiaries in Europe for overseas and developed the new mowing business in Japan
Fundamental structural reforms | Optimize production |
Optimize development | |
Deepen domestic sales | |
Common | |
Growth strategy | Focusing management resources on growth segments |
| ・Began construction of new buildings at domestic factories (Matsuyama, Shigenobu, Niigata) ・The transfer of combine harvesters from Kumamoto is proceeding as planned |
| ・Models and types targeted for reduction have been selected, and the process has moved into the execution phase ・For delays in some areas, we plan to deploy more resources to recover the delay and achieve the improvement targets in 2027 |
| ・Sales companies were merged ISEKI Japan was established. Large-scale Planning Section has started its operation ・Decrease in inventories has progressed beyond the plan |
| ・Labor costs maintained at the planned level ・Conducted the review of operations |
Overseas
strategies | ・Completed the consolidation of PTC Limited in the UK ・Promoting synergy creationthrough collaboration among three consolidated subsidiaries in Europe |
Domestic
| ・Strengthened initiatives toward: large-scale, advanced, dry-field, and environmentally friendly Developing next-generation products Developed the mowing business Started taking new initiatives 15 |
Core themes
Measures currently being implemented toward 2027
1. | Outline of Financial Results for the Second Quarter Fiscal Year Ending December 31, 2025 |
2. | Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2025 |
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Forecast of Consolidated Financial Results for the Fiscal Year Ending
December 31, 2025
・ | Upward revision for net sales and profit |
(JPY bn, %) | FY2022/12 | FY2023/12 | FY2024/12 | FY2025/12 (Previous Forecast) | FY2025/12 (Current Forecast) | Revision Amount | YoY after Revision | ||||
Actual | Actual | Actual | % | *2 Forecast | % | Forecast | % | ||||
Net Sales | 166.6 | 169.9 | 168.4 | 100.0 | 170.5 | 100.0 | 175.5 | 100.0 | +5.0 | +7.0 | |
(Domestic) | 112.6 | 113.0 | 113.0 | 67.1 | 113.5 | 66.6 | 120.0 | 68.4 | +6.5 | +6.9 | |
(Overseas) | 53.9 | 56.8 | 55.3 | 32.9 | 57.0 | 33.4 | 55.5 | 31.6 | -1.5 | +0.1 | |
Operating income | 3.5 | 2.2 | 1.9 | 1.1 | 2.6 | 1.5 | 3.5 | 2.0 | +0.9 | +1.5 | |
Ordinary income | 3.7 | 2.0 | 1.5 | 0.9 | 1.8 | 1.1 | 2.6 | 1.5 | +0.8 | +1.0 | |
Profit (loss) Attributable to Owners of Parent | 4.1 | 0.0 | (3.0) | - | 1.3 | 0.8 | 1.8 | 1.0 | +0.5 | +4.8 | |
Average *1 Exchange Rate (JPY) | US$ | 132.7 | 139.7 | 151.7 | 143.0 | 143.0 | - | -8.7 | |||
Euro | 140.7 | 156.6 | 164.8 | 157.0 | 165.0 | +8.0 | +0.2 | ||||
Year-end Dividend (JPY) | 30 | 30 | 30 | 30 | 30 | - | - | ||||
*1 From 2025, the PL conversion rate for overseas subsidiaries has been changed to the average rate during the fiscal year. (Previously, the fiscal year-end rate was used).
*2 Forecast announced on May 15, 2025 17
Notes on the Future Forecast
The objective of this presentation document is to provide information and never intends to induce any action.
The document was created by ISEKI with currently available information, and it involves potential risks and uncertainties. The forecast may not be consistent with actual results depending on fluctuation of the economic situation and market trends.
In using this information, investors are expected to depend on their own judgment. ISEKI is not liable for any
losses incurred by investment decision made utilizing the business forecast or targets given in this document.
These documents have been translated for reference purposes only. In the event of any discrepancy between
these translated documents and their Japanese originals, the originals shall prevail.
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