Tdk Stock Earnings Reports

TDK reported Q3 (nine-month) FY2025 results with net sales up 3.2% year‑on‑year to JPY1,670.5 billion and operating profit up 34.3% to a record JPY209.1 billion. Key drivers were strong demand and higher shipments into ICT markets (small rechargeable batteries, HDD-related components, sensors) and a recovery in nearline HDD demand; HDD heads and suspensions returned to profitability. Offsetting factors included continued weakness in BEV/autonomous vehicle demand (hurting passive components and automotive sensors), sluggish industrial equipment investment, and some seasonality in smartphone-related shipments. FX (weaker yen vs. USD/EUR) provided a meaningful positive impact on sales and profit. For Q4 and the full year, TDK raised full‑year net sales guidance from JPY2,120.0 billion to JPY2,180.0 billion, kept operating profit guidance unchanged while recognizing additional one‑off structural reform/write‑down expenses of JPY18 billion. The company lowered CapEx (from JPY250 billion to JPY240 billion), plans higher R&D spending (the transcript shows an increase described inconsistently), moved its USD assumption from JPY140 to JPY150, and now expects materially improved free cash flow (from ~JPY120 billion previously to ~JPY200 billion). Segment highlights: passive components saw year‑to‑date sales slightly down and profit contraction driven by industrial and BEV weakness; sensor applications had modest sales growth but margin pressure from capacity investments and one‑time prior gains; magnetic application products (HDD heads & suspensions) grew strongly and turned profitable; energy applications (rechargeable batteries) saw sales and profit increases driven by ICT/smartphone demand. Management plans to continue cost rationalization and structural reforms to sustain profitability and cash generation.