Espec records Q1 order surge on AI, EV demand despite profit drop

Espec Corp. recorded record-high orders in Q1 FY2025, totaling 18,921 million yen, an 11.4% increase from FY2024. This growth was driven by demand for testing in generative AI, continued development for electric vehicles, and investment in North American satellite communications. Orders surpassed both previous period figures and forecasts.

Despite the strong order performance, net sales for the quarter decreased by 10.0% to 12,323 million yen. This was attributed to many long-lead-time projects, large-scale products, and bulk multi-unit orders. The decline in sales significantly impacted profitability, with operating profit falling by 63.7% to 335 million yen, and profit attributable to owners of parent decreasing by 85.8% to 107 million yen.

Looking ahead, Espec Corp. has maintained its first-half and full-year forecasts, anticipating improvements from Q2 onwards. The company projects full-year orders of 66,000 million yen and net sales of 68,000 million yen for FY2025.