NTN (6472) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 2.8% YoY to ¥413,579 million; operating income increased 35.0% to ¥17,371 million on price pass-through and lower fixed costs.

• Profit attributable to owners of parent rose 76.2% to ¥5,461 million; operating margin reached 4.2%, versus 3.2% a year earlier.

Financial highlights

• Ordinary income increased 39.8% YoY to ¥12,202 million; net income was ¥6,018 million and EPS was ¥9.19.

• Gross profit rose to ¥81,315 million from ¥71,337 million; SG&A increased to ¥63,943 million from ¥58,471 million.

• Comprehensive income fell to ¥2,638 million from ¥11,172 million, mainly reflecting negative translation adjustments of ¥2,206 million.

• Total assets declined 4.9% from FY-end to ¥835,795 million; total liabilities fell 7.4% to ¥525,192 million.

• Free cash flow was ¥24.7 billion, up ¥10.4 billion YoY; inventories fell ¥8.2 billion from March 2026 to ¥237.7 billion.

Outlook and guidance

• FY2027 forecast: net sales ¥825,000 million, operating income ¥33,000 million, ordinary income ¥21,000 million, parent profit ¥15,000 million and EPS ¥25.23.

• Sales forecast was raised from ¥810 billion; operating income guidance is unchanged and includes ¥4.4 billion of integration costs.

• Annual dividend forecast remains ¥13 per share, comprising ¥6.50 at each of the second-quarter and year-end dates.