Nippon Seiki (7287) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 9.6% YoY to ¥171,250m and operating profit increased 16.5% to ¥6,114m; profit attributable to owners declined 7.1% to ¥3,468m.

• Higher revenue from head-up displays, motorcycle instruments, IT Solutions and Car Sales supported growth; prior-year foreign-exchange gains turned into losses.

Financial highlights

• H1 gross profit was ¥24,358m versus ¥22,676m; operating profit was ¥6,114m versus ¥5,247m.

• H1 profit before tax rose 1.0% to ¥6,225m; income tax expense increased to ¥2,765m from ¥2,315m, and attributable profit fell 7.1% to ¥3,468m.

• Q2 revenue increased 10.0% YoY to ¥88,000m and operating profit rose 5.3% to ¥3,920m; attributable profit fell 35.7% to ¥1,950m.

• Basic EPS was ¥60.47 versus ¥65.13; diluted EPS was ¥60.42 versus ¥65.04.

• H1 USD/JPY averaged ¥159.41 versus ¥146.02 in the prior-year period.

Outlook and guidance

• FY2027 guidance unchanged: revenue ¥320,000m, operating profit ¥14,000m, attributable profit ¥10,000m and basic EPS ¥191.38.

• H1 progress against full-year forecasts: revenue 53.5%, operating profit 43.7% and attributable profit 34.7%.

• Guidance excludes Toyodenso acquisition effects, which remain under review; actual results are exposed to demand, FX rates and other uncertainties.

• Interim dividend was ¥45 per share; FY2027 annual dividend is forecast at ¥90, up ¥10 from FY2026.