DENSO (6902) Q1 2027 earnings summary

Executive summary

• Revenue rose 9.1% year-over-year in the first quarter to ¥1,913.9 billion, driven by higher vehicle sales and demand in electrification and intelligence fields.

• Operating profit declined 21.5% year-over-year to ¥84.2 billion due to increased parts/material costs and higher investments for future growth, despite a weaker yen.

• Profit attributable to owners of the parent decreased 14.4% year-over-year to ¥67.9 billion.

Financial highlights

• Q1 revenue: ¥1,913.9B (+9.1% YoY); operating profit: ¥84.2B (–21.5% YoY); net profit: ¥67.9B (–14.4% YoY); profit before income taxes: ¥112.6B (–19.7% YoY).

• Basic EPS: ¥25.51 (down from ¥28.50 YoY).

• Comprehensive income: ¥36.3B (down from ¥54.4B YoY).

• Operating profit margin fell to 4.4% from 6.1% YoY.

• Foreign exchange rates contributed positively, with JPY weakening against USD, EUR, and CNY.

Outlook and guidance

• FY2027 revenue forecast: ¥7,750.0B (+2.8% YoY); operating profit forecast: ¥500.0B (–9.5% YoY); profit attributable to owners forecast at ¥382.0B (–13.9% YoY); basic EPS forecast at ¥150.08.

• Operating profit guidance unchanged, with cost increases offset by FX gains and business improvements.

• ROE expected at 7.2% for FY2027.

• Assumed exchange rates for Q2 onward: 1 USD = 153 yen, 1 EUR = 180 yen.