MINEBEA MITSUMI (6479) Q2 2027 earnings summary

Executive summary

• Q2 FY2027 net sales, operating income and parent-attributable profit reached second-quarter records; first-half sales, operating income and attributable profit also set records.

• Strong data-center, AI-server, bearings, aerospace and motor demand supported results; softer automotive, gaming and other markets, plus European structural reforms, weighed on some businesses.

Financial highlights

• Q2 net sales were ¥464.2bn (+12.8% YoY), operating income ¥31.8bn (+17.8%), and parent-attributable profit ¥29.7bn (+67.9%); EPS was ¥73.98.

• H1 net sales were ¥890,751m (+14.4% YoY), operating income ¥58,065m (+30.8%), pretax profit ¥71,805m (+77.9%) and parent-attributable profit ¥51,005m (+78.4%).

• Q2 profit included an ¥8.4bn fair-value gain linked to Toshiba shares; profit excluding the gain was ¥21.3bn, with adjusted EPS of ¥53.03.

• H1 comprehensive income was ¥39,905m, down YoY, reflecting a ¥14,617m foreign-currency translation loss in OCI.

Outlook and guidance

• FY3/27 forecasts were raised to net sales of ¥1,730.0bn, operating income of ¥128.0bn, pretax profit of ¥138.0bn and parent-attributable profit of ¥100.0bn; EPS is ¥249.01.

• Excluding Toshiba share valuation effects, FY3/27 attributable profit is forecast at ¥91.6bn and EPS at ¥228.06; both forecasts imply 24.0% YoY growth.

• 2H forecasts call for sales of ¥839.2bn (-5.3% YoY) and operating income of ¥69.9bn (+17.4%); game and optical-device revenue are expected to fall ¥38bn and ¥15bn, respectively.

• FY3/27 operating margin is forecast at 7.4% and real margin at 8.7%; the real-margin target is 10% by March 2029. 2H FX assumption is ¥155/$; restructuring costs are ~¥2.6bn.

• Five Growth Areas +1 sales are projected to grow at ~24% CAGR through FY3/29 to ¥430bn, including ¥230bn in AI-server-related revenue.