NSK (6471) Q2 2027 earnings summary

Executive summary

• H1 FY2027 sales rose 26.2% YoY to ¥520,351 million; operating income increased 69.8% to ¥30,066 million and attributable net income rose 78.8% to ¥18,838 million.

• Industrial Machinery strength, reforms and yen weakness supported results; Automotive demand remained weak in Europe and China.

• Results include Steering following consolidation from September 1, 2025, affecting year-on-year comparability.

Financial highlights

• H1 sales were ¥520,351 million versus ¥412,250 million; operating income was ¥30,066 million versus ¥17,708 million, with a 5.8% reported margin.

• H1 operating income excluding specified one-time and other items was ¥33.5bn, up ¥17.1bn YoY; income before taxes was ¥28,909 million and attributable net income was ¥18,838 million.

• Operating income benefited from ¥7.1bn FX impact, ¥5.4bn from volume and mix, and ¥2.7bn from profitability improvements.

• H1 U.S. tariff-related cost increases were fully offset by price pass-through, for a net zero impact.

Outlook and guidance

• FY2027 forecast: sales ¥1,050bn, operating income ¥56bn, income before taxes ¥53.5bn and attributable net income ¥34bn; adjusted operating income forecast is ¥71bn.

• Versus July, guidance rose ¥10bn for sales and ¥6bn for operating income; H2 FX assumptions are USD/JPY 155, EUR/JPY 175 and CNY/JPY 22.5.

• FY2027 Industrial Machinery forecast is ¥436bn sales and ¥37.5bn operating income; adjusted operating income is ¥44bn, or 10.1% of sales.

• Automotive FY2027 forecast is ¥403bn sales and ¥17.5bn operating income; adjusted margin target is 5%, with global vehicle production forecast at 91m units.

• H2 Industrial Machinery sales forecast is ¥221.5bn; operating income is ~¥19bn including ~¥5bn structural reform costs, and exceeds ¥24bn excluding them, at a margin of at least 11%.