• Rising production and cost control boost earnings – Ryobi’s Q1-2 FY12/25 earnings beat company guidance by a significant margin thanks to a faster-than-expected recovery in auto production, short-term demand for printing equipment, and cost controls. Despite such a strong H1, the company kept its full-year guidance intact, amid concerns over the impact of US trade policies, including a global economic slowdown, and volatile exchange rates. We think that the company’s H1 outperformance and success in passing on higher energy costs highlights customer loyalty and offers upside potential to full-year earnings, if the headwinds do not turn into a gale. To reflect this, we have raised our estimates.
