Exedy raises FY2025 forecast, boosts ROE target, and invests in new fund

Exedy Corporation reported its FY2025 Q2 consolidated financial results, showing revenue of JPY 148.1 bn (down 3.7% year-on-year) and operating profit of JPY 10.8 bn (down 4.6% year-on-year). Despite a decrease in AT product sales in Japan and increased human capital costs, sales exceeded initial forecasts due to higher prices and growth in AT products in China and motorcycle products in ASEAN countries. Net profit remained flat year-on-year at JPY 6.3 bn, surpassing initial projections due to reduced foreign exchange losses.

Based on strong first-half performance and anticipated continued momentum, Exedy revised its FY2025 full-year forecast. Revenue is now projected at JPY 295.0 bn, operating profit at JPY 21.0 bn, and net profit at JPY 12.5 bn, with an improved ROE of 7.0%. The company also raised its FY2030 ROE target to 10.0%, ahead of schedule, reflecting strategic shifts toward a balanced business portfolio and new business creation.

In line with its strategic updates, Exedy announced an investment in Allegis LS II 2025-10, a Series of CGF2021 LLC, amounting to $11m. This fund is expected to become a consolidated subsidiary and will be used to invest in startup companies to foster new business development. Other initiatives include an enhanced shareholder return policy with a minimum DOE of 5% and annual dividends of at least JPY 300 per share.