Aisin (7259) Q2 2027 earnings summary

Executive summary

• H1 revenue rose 7.3% YoY to ¥2,653.1bn, while operating profit fell 16.3% to ¥80.4bn and parent-attributable profit fell 28.9% to ¥49.7bn.

• Profit pressure from lower powertrain sales, higher material costs linked to the Middle East situation, and Kumamoto earthquake-related extraordinary costs was partly offset by FX and cost reductions.

Financial highlights

• H1 profit before tax fell 17.4% YoY to ¥87.9bn; operating profit margin was 3.0% versus 3.9%, and profit margin was 1.9% versus 2.8%.

• Revenue increased ¥181.1bn despite lower customer vehicle production and powertrain sales; USD/JPY was ¥159 versus ¥146 and CNY/JPY was ¥23.5 versus ¥20.3.

• Gross profit rose to ¥280.6bn from ¥278.0bn, while SG&A increased to ¥209.7bn from ¥187.5bn.

• Comprehensive income fell to ¥25.7bn from ¥134.8bn, including a ¥37.0bn other comprehensive loss versus ¥52.8bn income a year earlier.

• Operating cash flow was ¥145.7bn versus ¥176.2bn; investing cash flow was -¥103.0bn and financing cash flow was -¥118.4bn.

Outlook and guidance

• FY2027 revenue forecast remains ¥5,250bn, up 2.6% YoY; operating profit was cut to ¥215bn from ¥235bn, pretax profit to ¥225bn, and parent-attributable profit to ¥135bn from ¥150bn.

• Revisions reflect lower powertrain-unit sales, mainly in China, Middle East-related external changes, and extraordinary costs; forecast USD/JPY and CNY/JPY assumptions are ¥157 and ¥23.3.

• FY2027 powertrain sales forecast is 10.10m, down 0.9% YoY and below the prior 10.70m forecast; electrification units are forecast at 3.52m versus 3.75m previously.

• FY2027 forecast EPS is ¥192.76 and incorporates treasury-share acquisitions and cancellations through September 30, 2026.