Japan Aviation Electronics Industry (6807) Q2 2027 earnings summary

Executive summary

• H1 net sales rose 11.9% YoY to ¥123,564 million; operating profit fell 31.1% to ¥3,279 million and parent-attributable profit fell 55.4% to ¥1,390 million.

• Sales growth was led by automotive, industrial and infrastructure, and aviation and space; higher material, procurement, energy, logistics, and labor costs pressured profitability.

Financial highlights

• H1 net sales were ¥123,564 million, gross profit ¥17,826 million, and operating profit ¥3,279 million, versus ¥110,441 million, ¥18,088 million, and ¥4,760 million, respectively, a year earlier.

• Ordinary profit was ¥2,181 million versus ¥4,736 million; parent-attributable profit was ¥1,390 million versus ¥3,116 million; basic EPS was ¥20.62 versus ¥46.23.

• Operating margin fell to 2.7% from 4.3% YoY; ordinary profit margin was 1.8% and net profit margin 1.1%.

• Capital investment was ¥10.3 billion and depreciation ¥9.5 billion in H1.

• Comprehensive income was ¥865 million, including a ¥546 million foreign currency translation loss.

Outlook and guidance

• Full-year forecast: net sales ¥255 billion, operating profit ¥10.5 billion, ordinary profit ¥7.8 billion, parent-attributable profit ¥5.0 billion, and EPS ¥74.13; sales and operating profit targets rose from April estimates while ordinary and net profit targets fell.

• H2 operating profit is projected at ¥7.22 billion versus ¥3.28 billion in H1; higher sales, mix improvement, pricing, productivity, and cost reductions are expected to outweigh higher depreciation.

• Full-year market sales projections: automotive ¥132 billion, industrial and infrastructure ¥47.5 billion, mobile devices ¥58 billion, and aviation and space ¥12.5 billion.

• Full-year capital investment is projected at ¥25 billion and depreciation at ¥22 billion; average exchange-rate assumption is ¥155/US$.

• Dividend forecast is ¥25 per share at each of the second-quarter and year-end dates, ¥50 total, versus ¥60 for the prior fiscal year.