JVCKENWOOD (6632) Q2 2027 earnings summary

Executive summary

• H1 revenue rose 8.5% YoY to ¥183.8bn and core operating income increased 47.4% to ¥12.3bn, supported by M&T and ES growth, yen depreciation and U.S. tariff refunds.

• FY2027 revenue guidance was raised, while profit forecasts were lowered as weaker North American public-safety sales and higher component costs offset stronger M&T and ES outlooks.

Financial highlights

• Gross profit rose to ¥59.3bn from ¥51.6bn, with gross margin of 32.3% versus 30.5%; SG&A increased to ¥47.1bn from ¥43.2bn.

• Operating profit increased 19.2% to ¥11.5bn; profit before tax rose 16.2% to ¥12.0bn; profit attributable to owners rose 9.5% to ¥8.2bn.

• EBITDA increased 19.0% to ¥23.2bn, with an EBITDA margin of 12.6% versus 11.5%.

• Total comprehensive income fell 44.7% to ¥5.8bn, as OCI net of tax moved to a ¥2.6bn loss from ¥2.8bn income.

Outlook and guidance

• FY2027 revenue forecast rose ¥12.0bn to ¥376.0bn (+5.4% YoY); core operating income is forecast at ¥22.3bn versus prior guidance of ¥23.4bn.

• Revised forecasts: operating profit ¥19.5bn, profit before tax ¥19.7bn and profit attributable to owners ¥14.7bn; ROE 10.0%.

• Full-year core operating income forecast includes ¥4.5bn of U.S. tariff refunds; higher memory and component costs and fixed costs are expected to offset revenue and margin gains.

• Outlook assumes steady domestic Dealer-Installed Option and Entertainment performance, but lower North American public-safety sales and continued component-cost pressure; assumed rates are ¥155/US$ and ¥180/€.