NTN (6472) Q2 2026 earnings summary

Executive summary

• Operating income increased year-over-year despite a decrease in sales, driven by cost reductions and improved selling prices that offset lower demand and tariff impacts.

• Net sales for the six months ended September 30, 2025, were ¥402.3B, down 2.8% YoY, with operating income up 29.3% to ¥12.9B and ordinary income up 150.5% to ¥8.7B.

• Profit attributable to owners of parent was ¥3.1B in H1 FY2025, reversing a loss of ¥2.1B in the prior year period.

• Full-year forecasts were revised upward, with higher sales and operating income expected due to successful cost and price management.

• Structural reforms and strategic initiatives under the "DRIVE NTN100" plan are progressing ahead of schedule.

Financial highlights

• H1 FY2025 net sales were ¥402.3B, down ¥11.7B YoY (excluding forex: -1.1%), while operating income rose to ¥12.9B (+¥2.9B YoY).

• Operating margin improved to 3.2% in H1 FY2025 from 2.4% in H1 FY2024.

• Profit attributable to owners of parent was ¥3.1B in H1 FY2025, up ¥5.2B YoY.

• Free cash flow in H1 FY2025 was ¥14.3B, up ¥11.5B YoY.

• Gross profit increased to ¥71.3B from ¥69.9B YoY.

Outlook and guidance

• Full-year net sales forecast is ¥805.0B (up 2.5% YoY), with operating income projected at ¥26.0B (up 13.2%) and ordinary income at ¥13.0B.

• Profit attributable to owners of parent is forecast at a loss of ¥4.0B for the full year.

• FY2025 annual dividend forecast is ¥11 per share (interim ¥5.5, year-end ¥5.5), unchanged from the previous year.