Harmonic Drive Systems (6324) Q2 2026 earnings summary

Executive summary

• Consolidated net sales reached ¥27,838 million in 1H FY03/26, up 4.8% year-over-year and 3.1% above forecasts, driven by strong demand in industrial robots and semiconductor equipment, despite declines in automotive applications.

• Operating income turned positive to ¥465 million from a loss of ¥637 million in the prior year, exceeding forecasts by 55.2%.

• Net income reached ¥317 million, a significant improvement from a loss of ¥850 million year-over-year.

• Orders received increased 14.3% year-over-year to ¥29,519 million, with notable growth in Japan and Europe, while order backlog decreased 7.5% to ¥20,531 million.

• Strong order recovery in Europe and North America, with robust demand for AI robot and semiconductor equipment applications.

Financial highlights

• Net sales increased by ¥1,279 million year-over-year; operating income improved by ¥1,103 million.

• Ordinary income rose to ¥502 million from a loss of ¥828 million year-over-year.

• EPS improved to ¥3.35 from a loss of ¥8.95 year-over-year.

• Gross profit improved to ¥7,965 million from ¥6,727 million year-over-year, with gross margin rising due to higher factory utilization in Japan.

• Comprehensive income was negative ¥438 million, down from ¥2,391 million last year, mainly due to foreign currency translation losses.

Outlook and guidance

• Full-year FY03/26 consolidated net sales forecast at ¥57,000 million, up 2.4% year-over-year.

• Operating income projected at ¥1,500 million, a substantial increase from ¥6 million in the prior year.

• Net income expected to decline to ¥1,300 million due to one-time gains in the previous year.

• Dividend forecast remains unchanged at ¥20 per share for the fiscal year ending March 31, 2026.

• Capital investment planned at ¥6,100 million, up 62% year-over-year.