Presentation of Financial Results for the Second Quarter ended September 30, 2025
November 13, 2025 SMC Corporation
Yoshiki Takada, President
FY2025 1stHalf Summary
Net sales increased yoy mainly because of the volume growth in Greater China. Operating profit decreased yoy due to foreign exchange impact and increase in depreciation.
＜By Industry＞The demand for semi-conductor and electrical machinery in Japan, North America and South Korea did not reach a full-scale recovery. While the demand for Automotive in Greater China performed well by the recovery in EV battery, CAPEX in other regions has been postponed due to tariff impacts. Medical equipment-related and food machinery-related industries showed demand for labor-saving and automation, but growth remained sluggish.
＜By Region＞North America remained at low levels due to delayed recovery in semi-conductor demand and tariff impacts on the automotive industry. Japan and Asia remain flat. Greater China performed well because of the high growth rate in home appliances, flat panel displays, automotive, and secondary batteries. The demand in Europe is in recovery trend.
Resolved to pay interim dividends of 500 yen per share, totaling
31.6 billion yen.
The Company repurchased treasury stock of 21,795 million yen during the six months ended September 30, 2025.
FY24/2Q Result Amount vs net sales | FY25/2Q Result Amount vs net sales | YoY (24/2Q vs 25/2Q) Amount % | ||||
Net sales | 395.0 | 400.2 | 5.2 | 1.3% | ||
Cost of sales | 209.5 | 53.0% | 219.2 | 54.8% | 9.7 | 4.6% |
Gross profit | 185.5 | 47.0% | 181.0 | 45.2% | -4.4 | -2.4% |
Selling, general & administrative expenses | 86.0 | 21.8% | 90.2 | 22.5% | 4.2 | 4.9% |
Operating profit | 99.4 | 25.2% | 90.7 | 22.7% | -8.7 | -8.8% |
Ordinary profit | 104.2 | 26.4% | 107.9 | 27.0% | 3.6 | 3.5% |
Net profit | 78.1 | 19.8% | 79.1 | 19.8% | 0.9 | 1.3% |
Average exchange rate | ||||||
USD | 152.77 | 146.02 | -6.75 | -4.4% | ||
EUR | 166.04 | 168.05 | +2.01 | 1.2% | ||
CNY | 21.15 | 20.29 | -0.86 | -4.1% | ||
Depreciation | 15.5 | 20.1 | 4.6 | 30.2% | ||
R&D expenses | 16.1 | 17.6 | 1.4 | 9.3% | ||
* Maximum Amount for Treasury Stock Acquisition : 30 billion yen
(Billions of Yen)
(Buyback period : From May 2025 to March 2026) 2
FY2025 Guidance
Full-year forecast and exchange rate assumptions have been revised based on the result of the 1st half.
＜By Industry＞The recovery in semi-conductor-related business is pushed back to FY2026. For automotive, while the capex in EV battery is recovering in China, the demand is sluggish in other regions due to tariff impacts.
＜By Region＞Japan︓Full recovery in semi-conductor-related will be the next fiscal year. The demand in automotive is sluggish. Machinery tool industry sees solid demand.
North America︓The situation is similar to Japan.
Greater China︓ Electrical machinery, automotive, secondary batteries, Machinery tool-related shows stable demand. Medical- related is sluggish.
Asia︓ The recovery in semi-conductor is delayed in South Korea.
Europe︓Automotive and machinery tool in German remain sluggish. Capex in Italy, France etc. is in a recovery trend.
(Billions of Yen)
FY24 Result Amount vs net sales | FY25 Current Forecast Amount vs net sales | FY25 Revised Forecast Amount vs net sales | vs Revised Forecast (FY24 vs Revised Forecast) Amount ％ | vs Current Forecast (Current vs Revised Forecast) Amount ％ | |||||
Net sales | 792.1 | 850.0 | 816.0 | 23.8 | 3.0% | -34.0 | -4.0% | ||
Cost of sales | 429.0 54.2% | 451.0 53.1% | 449.0 55.0% | 19.9 | 4.6% | -2.0 | -0.4% | ||
Gross profit | 363.0 45.8% | 399.0 46.9% | 367.0 45.0% | 3.9 | 1.1% | -32.0 | -8.0% | ||
SGA | 172.7 | 21.8% | 184.0 | 21.6% | 184.0 22.5% | 11.2 | 6.5% | 0.0 | 0.0% |
Operating profit | 190.2 | 24.0% | 215.0 | 25.3% | 183.0 22.4% | -7.2 | -3.8% | -32.0 | -14.9% |
Ordinary profit | 209.9 | 26.5% | 232.0 | 27.3% | 209.0 25.6% | -0.9 | -0.4% | -23.0 | -9.9% |
Net profit | 156.3 | 19.7% | 167.0 | 19.6% | 153.0 18.8% | -3.3 | -2.1% | -14.0 | -8.4% |
Average exchange rate | |||||||||
USD | 152.59 | 141.00 | 147.10 | -5.49 | -3.6% | +6.10 | 4.3% | ||
EUR | 163.86 | 157.00 | 172.00 | +8.14 | 5.0% | +15.00 | 9.6% | ||
CNY | 21.10 | 19.50 | 20.60 | -0.50 | -2.4% | +1.10 | 5.6% | ||
Capital Investment | 107.8 | 180.0 | 180.0 | 72.1 | 67.0% | 0 | 0.0% | ||
Depreciation | 34.3 | 42.3 | 42.3 | 7.9 | 23.3% | 0 | 0.0% | ||
R&D expenses | 33.3 | 37.0 | 37.0 | 3.6 | 10.9% | 0 | 0.0% | ||
Annual dividend per share (JPY) | 1,000 | 1,000 | 1,000 | 0 | 0 | ||||
Mid-Long term Priority Measures and Measures for FY2025
Mid-Long term Priority MeasuresMeasures for FY2025＜Sales＞
Strengthen Direct Sales and Distributor Sales
Diversification of Products and Industries
Strengthen Direct Sales to End Users
Optimization of Selling Prices up to situation of Each Market
＜Production＞
Capex for Sustainable Product Supply
2．A System that can Respond to Fluctuation in Demand
3．Appropriate Management of Inventories
＜Development＞
Improving Productivity in Development
Global Collaboration and Acquiring Talented Human Resources
１．Sales Strategies Based on Our Strengths
* Sales Growth and Market Share Expansion
・Comprehensive coverage of global markets with the wide global footprint
・Sales as a product group with our wide product lineup and short delivery lead time system
２．Aggressive Capex → Differentiation from Competitors and Improving Competitiveness
・Product supply capacity : To make necessary investments steadily regardless of business conditions
・Production Diversification: Sustainable and resilient product supply system
・Human Capital Investment : To maintain and acquire talented human resources globally and to increase productivity
３．Establish a System for Developing Products that Meet the Performance Required by Customers
・Never miss a sales opportunity through rapid product development in response to customer requests
・Continue to enhance compact, lightweight product lines and environmentally friendly products
・Providing products and services that help customers reduce their CO2 emissions
CAPEX Plan
＜Progress in Capex＞
By the end of the second quarter, 111.2 billion yen has been invested out of the capex plan of 180 billion yen. The amount of capex in the next fiscal year is expected a little bit lower than 100 billion yen.
The forecast of the amount of depreciation in this fiscal year is in the low 40-billion-yen range as we disclosed in the guidance, and to peak out in around 65 billion yen range in the next fiscal year.
＜Policy in Capex＞
We assume that demand for automation will grow in the mid-long term against the backdrop of a shrinking labor force, rising labor cost and returning to local production for local consumption. We will strengthen our supply chain by expanding production capacity and duplication of production lines, while also investing in technical departments in
each regions to drive product development and diversification, thereby increasing sales opportunities.
(Billions of Yen) | FY25 Plan | FY25 2Q | |||
Function | Place | Plan | Item | Result | Item |
PRD | Japan | Tono Fac. SP. Tsukuba Fac. 41.0 Shimotsuma Fac. Kamaishi Fac. Others Vietnam Mfg 39.1 China Mfg(s) SMC US Others | 25.9 | Tono Fac. SP. Tsukuba Fac. Shimotsuma Fac. Kamaishi Fac. Others | |
Overseas | 15.2 | Vietnam Mfg China Mfg(s) SMC US Others | |||
Admin. R&D Sales Logistics | Japan | 80.4 New Technical Center Others SMC Taiwan SMC Australia SMC China (Sales) 19.5 SMC Malaysia SMC Korea European Warehouse SMC Germany Others | 64.1 | New Technical Center Others | |
Overseas | 6.0 | SMC Taiwan SMC Australia SMC China (Sales) SMC Malaysia SMC Korea European Warehouse SMC Germany Others | |||
Total | 180.0 | 111.2 | |||
(bil yen)
Estimate for Capex and Depreciation
5
200
160
120
80
40
0
2021
2022
2023
2024
2025
Plan
2026
2027
Estimate Estimate
Capex Depreciation