Azbil (6845) Q2 2026 earnings summary

Executive summary

• H1 FY2025 orders declined 3.6% to ¥165,046m and sales fell 4.6% to ¥132,897m, mainly due to the Azbil Telstar transfer; excluding this effect, both increased.

• Operating income rose 21.0% to ¥17,718m and net income attributable to owners of parent rose 23.0% to ¥13,463m; full-year operating income guidance was revised upward.

• The FY2025–2027 medium-term plan targets FY2027 sales of ¥340bn and operating income of ¥51bn, alongside investment in human capital, product competitiveness, new businesses and DX.

Financial highlights

• H1 ordinary income rose 24.9% to ¥18,320m; gross margin improved 4.2 percentage points to 46.2%, and operating margin rose to 13.3% from 10.5%.

• H1 net income increased despite no gain from the U.S. subsidiary sale that supported the prior-year comparison; prior-year net income included a ¥7.6bn Azbil Telstar sale gain.

• Overseas sales ratio was 18.2%; the shareholders’ equity ratio improved to 77.0% from 75.3% at FY2024-end.

Outlook and guidance

• Full-year forecast: sales ¥298.0bn, operating income ¥45.5bn and net income attributable to owners of parent ¥33.5bn; operating income is expected to grow for a fifth consecutive year, while net income is down against the prior-year extraordinary gain.

• Building Automation forecasts are ¥154.0bn sales and ¥27.0bn segment profit; Advanced Automation targets ¥111.0bn sales and ¥17.5bn segment profit, with factory automation recovery expected to progress gradually in H2.

• Life Automation forecasts are ¥34.5bn sales and ¥1.0bn segment profit, in line with initial plans and down YoY.

• Annual dividend is forecast at ¥26 per share, with DOE expected at 5.6%.