• Stable performance maintained – With demand stemming from technology (chiefly optical connectors), aerospace, and medical sectors, Sodick’s Q1-3 FY12/25 results demonstrated a sustained recovery YoY. Order visibility for the mainstay EDM units remains high, with Q3 FY12/25 orders rising 18.9% YoY, driven primarily by demand from China. Quarterly GPM of 36.2% in Q3 FY12/25 indicates progress toward improving the sales mix by selling high-value-added products. FY12/25 guidance was unchanged, implying a relatively end-loaded Q4 FY12/25, partly stemming from moderated sales contribution in Q3 FY12/25 in the Machine Tools business – we infer this was due to customer scheduling. Overall, we view the company as taking concrete steps in its recovery.
