Kyocera (6971) Q2 2027 earnings summary

Executive summary

• H1 FY2027 sales revenue rose 8.8% YoY to ¥1,078.3bn; operating profit increased 56.4% to ¥65.6bn and profit attributable to owners rose 32.2% to ¥73.4bn.

• High-value AI- and semiconductor-related components drove growth, while reported results absorbed ¥34.1bn in net one-time costs.

Financial highlights

• H1 revenue was ¥1,078,337M, operating profit ¥65,609M, profit before income taxes ¥93,020M and profit attributable to owners ¥73,430M.

• Gross profit increased 18.8% to ¥341.5bn, with gross margin at 31.7% versus 29.0%; basic EPS was ¥56.73 versus ¥39.61.

• Profit for the period increased 32.2% to ¥75.6bn; comprehensive income rose 46.1% to ¥141.1bn, including ¥79.3bn of financial-asset fair-value gains in OCI.

• Yen depreciation lifted H1 sales by ¥63bn and profit before taxes by ¥12bn YoY; average rates were ¥159/$ and ¥184/€.

Outlook and guidance

• FY2027 sales revenue forecast rose ¥40bn to ¥2,120bn, up 2.4% YoY; operating profit remains ¥160bn, profit before taxes ¥200bn and profit attributable to owners ¥160bn.

• FY2027 basic EPS is forecast at ¥123.62 and ROE at 4.9%; operating, pretax and parent-attributable profit margins are forecast at 7.5%, 9.4% and 7.5%.

• Solid AI- and semiconductor-component demand is expected to continue; business-margin gains and the ~¥15bn Chemical Business transfer gain are expected to offset H1 one-time costs.

• FY2027 exchange-rate assumptions are ¥155/$ and ¥180/€; sales and profits are expected to increase YoY excluding favorable FX.