DENSO (6902) Q4 2026 earnings summary

Executive summary

• Revenue rose 5.3% year-over-year to ¥7,540.0 billion, driven by higher vehicle sales and cost recovery from product program changes, despite global uncertainties and rising costs.

• Operating profit increased 6.5% to ¥552.5 billion, supported by business improvements, cost reductions, and higher production volumes, despite higher costs and investments in workforce.

• Profit attributable to owners grew 5.9% to ¥443.8 billion, with ROE improving to 8.5%; comprehensive income surged to ¥1,001.7 billion from a loss last year.

Financial highlights

• Revenue: ¥7,540.0 billion (+5.3% YoY); Operating profit: ¥552.5 billion (+6.5% YoY); Profit before income taxes: ¥617.3 billion (+6.8% YoY).

• Gross profit improved to ¥1,169.6 billion from ¥1,102.9 billion year-over-year.

• Basic earnings per share rose to ¥162.96 from ¥145.02.

• Dividend for FY2026 set at ¥67 per share, up ¥3 from prior year; DOE at 3.5%.

• Major customers: Toyota group revenue up 6.2%, other OEMs up 4.6%, aftermarket/non-automotive up 14.8%.

• By product: Mobility electronics up 9.0%, electrification systems up 5.8%, thermal systems up 3.0%.

Outlook and guidance

• FY2027 revenue forecast at ¥7,670.0 billion (+1.7% YoY), operating profit expected to decline to ¥500.0 billion (down 9.5%) due to increased investments and uncertain environment.

• Profit attributable to owners projected to decrease 13.9% to ¥382.0 billion; EPS forecast at ¥146.95.

• Dividend forecast for FY2027 is ¥74 per share, a ¥7 increase; DOE expected at 3.6%.

• ROE projected to decrease to 7.0% in FY2027.

• Guidance reflects exchange rate assumptions (USD/JPY 153, EUR/JPY 180) and ongoing geopolitical risks.