Kyocera (6971) investor relations material

Executive summary

• Focus on enhancing corporate value through innovation, ethical management, and flexible business operations.

• Group-wide management reforms include a new Corporate Planning Office to drive growth strategy and capital allocation.

• Business portfolio restructuring and organizational reforms executed, including major business transfers and consolidations.

• Sales revenue rose 2.8% year-over-year to ¥2,070.2 billion, driven by strong semiconductor demand and offsetting a decline in Solutions Business due to the transfer of SouthernCarlson.

• Operating profit surged 332.8% to ¥118.1 billion, aided by a ¥17.0 billion gain from the SouthernCarlson transfer and lower impairment losses compared to the prior year.

Financial highlights

• Fiscal 2026 sales revenue rose 2.8% year-over-year to ¥2,070.2 billion, driven by semiconductor components.

• Operating profit surged 332.8% to ¥118.1 billion, with profit before income taxes up 165.6% to ¥169.0 billion, reflecting structural reforms and one-time gains.

• EPS increased to ¥102.70 from ¥17.11 year-over-year.

• Gross profit margin improved to 29.4% from 27.8% year-over-year.

• Capital expenditures reached ¥149.1 billion, up from ¥141.9 billion, mainly for new factory buildings.

Outlook and guidance

• Fiscal 2027 sales revenue forecasted to decline 6.3% to ¥1,940.0 billion due to business transfers, but operating profit expected to rise 10% to ¥130.0 billion.

• Profit before income taxes projected at ¥170.0 billion, with EPS at ¥100.54.

• Annual dividend for fiscal 2027 is projected at ¥56 per share, up ¥4 from fiscal 2026.

• Fiscal 2028 management plan targets sales revenue of ¥2,050.0 billion and profit before income taxes of ¥192.0 billion.