Nippon Gear (6356) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue was ¥4,451m, up 5.7% YoY; operating profit rose 59.9% to ¥1,266m and net income rose 60.0% to ¥888m.

• Orders increased 20.5% YoY to ¥7,264m, while order backlog reached ¥8,516m, up 49.3% from FY2026 year-end.

Financial highlights

• Gross profit was ¥2,310m versus ¥1,962m YoY; SG&A was ¥1,044m versus ¥1,170m, and ordinary profit was ¥1,302m versus ¥817m.

• Profit growth included a ¥75m reduction in expenses from pension actuarial differences: the prior period recorded a ¥43m unfavorable difference and the current period a ¥31m favorable difference, both in Q1.

• Net income was ¥888m versus ¥555m YoY; EPS was ¥62.38 versus ¥39.00.

Outlook and guidance

• FY2027 guidance remains unchanged: revenue ¥10,000m (+1.2%), operating profit ¥2,500m (+1.7%), ordinary profit ¥2,560m (+2.1%), net income ¥1,760m (+0.5%), EPS ¥123.62.

• H1 results exceeded the previously announced first-half forecast, but full-year guidance was retained because revenue and expense forecasts were difficult to estimate and profit could not be reasonably calculated.

• FY2027 annual dividend forecast is ¥10 per share, including ¥5 at interim and ¥5 at year-end; interim dividend was ¥5 per share.