NOK (7240) Q2 2027 earnings summary

Executive summary

• H1 FY2026 sales rose 5.0% YoY to ¥377.25bn; operating income increased 15.6% to ¥18.157bn and parent-attributable profit grew 41.0% to ¥18.803bn.

• Seal growth offset an operating loss in Electronic Products; higher sales, FX gains and lower income taxes supported earnings.

• Integration established a new group on Oct. 1, 2026; FY2026 guidance and a year-end dividend forecast were announced.

• Eagle Industry grew revenue and profit, with Semiconductor returning to profitability.

Financial highlights

• H1 operating margin was 4.8% vs. 4.4%; ordinary income rose 22.6% to ¥26.470bn, benefiting from an FX gain versus a prior-year FX loss.

• Consolidated net income was ¥21.722bn vs. ¥15.401bn; parent-attributable profit was ¥18.803bn vs. ¥13.332bn, with net income including a one-time integration-related tax expense decrease.

• EPS was ¥118.68 vs. ¥81.66; comprehensive income was ¥25.307bn vs. ¥31.179bn, reflecting lower other comprehensive income.

• Gross profit increased to ¥69.746bn from ¥64.696bn; SG&A rose to ¥51.589bn from ¥48.982bn.

• Eagle Industry H1 revenue rose to ¥95.3bn from ¥85.5bn; operating income was ¥7.8bn vs. ¥5.5bn and margin was 8.2% vs. 6.5%.

Outlook and guidance

• FY2026 forecast: revenue ¥844.6bn, operating income ¥42.3bn, operating margin 5.0%, ordinary income ¥57.3bn, net income ¥51.6bn and EPS ¥298.50.

• Forecast net income includes a ¥13.4bn step-acquisition gain; FY2026 includes Eagle Industry's 2H results, while its H1 results contributed ¥2.1bn of equity-method income.

• FY2028 targets: 7% operating margin and 5–6% EPS 3-year CAGR; FY2031 targets: ¥1tn net sales and 8% operating margin.

• Middle East uncertainty is assumed to persist through FY2026; raw-material cost increases are addressed through pricing, with some recovery delayed to FY2027.

• FY2026 year-end dividend forecast is ¥70 per share; the forecast was issued by the newly established parent.