NGK Insulators (5333) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 13.8% YoY to ¥371.3bn; operating income increased 43.5% to ¥69.9bn and net income attributable to owners rose 154.7% to ¥60.8bn.

• Results benefited from higher sales, yen depreciation, a ¥2.6bn gain on investment securities sales and lower taxes tied to restructuring and subsidiary liquidations.

• H1 sales and income exceeded prior first-half records; operating income improved YoY in each business segment.

Financial highlights

• Ordinary income rose 50.8% YoY to ¥70.4bn; comprehensive income was ¥54.9bn versus ¥52.4bn a year earlier.

• Net income was ¥61.3bn versus ¥24.2bn; diluted EPS was ¥214.37 and basic EPS ¥214.66.

• Gross profit increased to ¥124.6bn from ¥95.9bn; cost of sales was ¥246.7bn and SG&A ¥54.7bn.

• Total assets were ¥1,237.5bn, down ¥5.9bn from March; net assets rose ¥13.0bn to ¥830.4bn, while liabilities fell ¥18.9bn to ¥407.1bn.

Outlook and guidance

• FY2027 forecast revised upward: net sales ¥770bn, operating income ¥130bn, ordinary income ¥126bn and net income attributable to owners ¥100bn.

• Revised forecast versus April: sales +¥60bn, operating income +¥23bn, ordinary income +¥21bn and net income +¥18bn; EPS forecast ¥354.02.

• Full-year segment forecasts: Environment sales ¥425bn and operating income ¥82bn; Digital Society ¥275bn and ¥41bn; Energy & Industry ¥70bn and ¥7bn.

• FY exchange assumptions: ¥155/$ and ¥180/€ average; second-half assumptions ¥150/$ and ¥175/€.

• Full-year outlook anticipates ongoing AI-related semiconductor equipment demand and solid automotive product demand, with possible pullback from H1 cost and platinum-price tailwinds.