DENSO (6902) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 7.0% YoY to ¥3,843.6bn, while operating profit fell 19.5% to ¥170.1bn amid material costs, growth investment and a prior-year one-time factor.

• CORE 2030 targets sustainable growth through higher-value products, manufacturing innovation, people development and partner co-creation.

Financial highlights

• Profit before income taxes fell 17.6% YoY to ¥201.5bn; parent-attributable profit declined 8.8% to ¥119.8bn, while profit for the period fell 13.0% to ¥131.5bn.

• Basic EPS was ¥46.36 versus ¥47.70; gross profit declined to ¥509.1bn from ¥520.9bn despite higher revenue.

• Operating cash flow was ¥193.2bn versus ¥335.9bn; investing cash outflow was ¥161.2bn versus ¥217.7bn.

• Comprehensive income fell to ¥66.3bn from ¥311.8bn, including a swing in other comprehensive income from a ¥160.6bn gain to a ¥65.2bn loss.

Outlook and guidance

• FY2027 forecasts remained unchanged: revenue ¥7,750.0bn, operating profit ¥500.0bn, pretax profit ¥553.0bn and parent-attributable profit ¥382.0bn.

• Net income forecast is ¥422bn; forecast operating margin is 6.5%, ROE 7.2%, and annual dividend ¥74 per share, including ¥37 interim.

• Higher material costs and lower production volume are expected to be offset by yen weakness and cost reductions; Q3-onward FX assumptions are ¥153/USD and ¥180/EUR.

• FY2027 vehicle production forecasts: Japan 8.42m units, up 0.20m; overseas production of Japanese manufacturers 16.11m, down 0.60m YoY.