Nitto Denko (6988) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 8.7% YoY to ¥558.4bn; operating profit increased 12.0% to ¥105.8bn, and parent-attributable profit rose 11.0% to ¥76.5bn.

• FY2027 operating profit guidance remained ¥200.0bn as segment forecasts shifted; the annual dividend forecast rose to ¥72 per share and planned share repurchases totaled ¥100.0bn.

Financial highlights

• H1 profit before income taxes rose 11.8% to ¥106.4bn; basic EPS was ¥115.32 versus ¥101.32 a year earlier.

• Gross profit increased to ¥212.2bn from ¥197.3bn; operating profit rose to ¥105.8bn from ¥94.5bn.

• Operating cash flow was ¥108.8bn versus ¥75.0bn; investing and financing cash outflows were ¥62.6bn and ¥74.3bn, respectively.

Outlook and guidance

• FY2027 forecasts remain revenue of ¥1.11tn, operating profit of ¥200.0bn, and parent-attributable net profit of ¥142.0bn; forecast growth is 8.0%, 8.9%, and 6.4%, respectively.

• FY2027 operating margin forecast is 18.0%; the USD/yen assumption was revised to ¥158.2 from ¥158.0.

• Overall revenue and operating profit forecasts are unchanged; estimated FY2027 impact from Middle East tensions narrowed to -¥4.5bn from -¥10.0bn.