JVCKENWOOD (6632) Q2 2026 earnings summary

Executive summary

• Revenue for H1 FYE3/'26 declined 4.1% YoY to ¥169.3B, mainly due to U.S. tariff measures and component shortages, especially in the Communications Systems Business.

• Core operating income dropped 36.1% YoY to ¥8.3B, reflecting lower sales.

• Profit attributable to owners fell 32.4% YoY to ¥7.5B.

• Despite these challenges, the Mobility & Telematics Services sector outperformed expectations, with improved profitability.

Financial highlights

• H1 FYE3/'26 revenue was ¥169.3B, down 4.1% YoY; core operating income was ¥8.3B, down 36.1% YoY.

• Operating profit fell to ¥9.6B (down 28.9% YoY); profit attributable to owners was ¥7.5B (down 32.4% YoY).

• EBITDA for H1 was ¥19.5B, with an EBITDA margin of 11.5%.

• Basic earnings per share for the period was ¥50.97, down from ¥73.55 YoY.

• Total assets as of September 30, 2025, were ¥313.6B; total equity was ¥137.6B.

Outlook and guidance

• Full-year revenue forecast for FYE3/'26 revised to ¥360.0B, with core operating income forecast at ¥21.0B.

• Profit attributable to owners forecast at ¥15.5B; earnings per share forecast at ¥105.29.

• Year-end dividend forecast raised to ¥18 per share.

• Tariff impacts expected to be mitigated in H2 through production transfers and other measures.

• Recovery in component supply expected to be delayed.