Kyocera (6971) Q2 2026 earnings summary

Executive summary

• Sales revenue for the first half of fiscal 2026 decreased by 0.7% year-over-year to ¥991.4 billion, mainly due to a stronger yen, but operating profit rose 10.7% to ¥41.9 billion and profit before income taxes increased 31.1% to ¥67.9 billion, driven by improvements in the Core Components and Organic Packages and Boards Businesses, and reduced foreign exchange losses.

• Profit attributable to owners of the parent surged 53.9% year-over-year to ¥55.5 billion, aided by a tax adjustment from the sale of KDDI shares.

• Comprehensive income for the period jumped to ¥96.6 billion from ¥20.0 billion year-over-year.

Financial highlights

• Operating profit margin improved from 3.8% to 4.2% year-over-year.

• Gross profit increased 1.8% year-over-year to ¥287.5 billion, with gross margin improving to 29.0%.

• Capital expenditures increased, mainly due to new factory completions in Japan, while depreciation charges decreased due to prior impairment losses.

• R&D expenses slightly decreased due to focused project selection.

• Cash and cash equivalents at period-end increased by ¥161.4 billion to ¥548.3 billion.

Outlook and guidance

• Fiscal 2026 sales revenue forecast revised upward to ¥1,950 billion, with operating profit expected at ¥70 billion and profit before income taxes at ¥117 billion, reflecting a weaker yen and improved business performance.

• EPS forecast raised to ¥67.76, and capital expenditures, depreciation, and R&D expenses are expected to remain stable.

• Segment forecasts updated, with Core Components and Solutions Business expected to drive profit growth.

• Exchange rate assumptions updated to 145 yen/USD and 170 yen/Euro.