Murata Manufacturing (6981) Q2 2027 earnings summary

Executive summary

• H1 revenue rose 20.8% YoY to ¥1,090,764 million; operating profit increased 48.9% to ¥245,907 million and parent-attributable profit rose 40.6% to ¥186,152 million.

• Data-center demand, higher production and utilization, and yen depreciation drove growth; higher fixed costs, lower selling prices, and declines in multilayer resin substrates and smartphone high-frequency modules partly offset gains.

Financial highlights

• H1 profit before tax rose 42.1% to ¥248,415 million; basic EPS was ¥102.43, versus ¥71.77 a year earlier.

• Q2 revenue was ¥588,500 million and operating profit ¥147,453 million, up 20.9% and 42.4% YoY; both rose 17.2% and 49.8% QoQ, respectively.

• H1 operating cash flow was ¥215,455 million, free cash flow ¥102.9B, and period-end cash and equivalents ¥600.6B.

• H1 one-time items totaled a net +¥2B: +¥4B from U.S. tariff impacts, including refunds, offset by ¥2B in power-module project-cancellation losses.

Outlook and guidance

• Full-year guidance: revenue ¥2,260,000 million, operating profit ¥520,000 million, profit before tax ¥532,000 million, and parent-attributable profit ¥396,000 million.

• Versus July, revenue guidance rose ¥150B (+7.1%) and operating profit ¥90B (+20.9%); projected post-tax ROIC increased from 13.9% to 16.6%.

• H2 revenue and operating profit are forecast at ¥1,169.2B and ¥274.1B; the assumed exchange rate from Q3 onward is ¥155 per U.S. dollar.

• Annual dividend guidance is ¥70 per share, unchanged from the prior forecast; the planned ¥150B share repurchase remains on track.