Panasonic (6752) Q2 2026 earnings summary

Executive summary

• Q2 FY2026 saw year-on-year declines in sales and profit, mainly due to lower Lifestyle sales, Automotive deconsolidation, and US tariffs, despite growth in Connect, Industry, and Energy segments.

• Adjusted operating profit and net profit both decreased, with Energy segment's in-vehicle business and US tariffs as key negative factors.

• Structural reforms and personnel optimization are progressing, with a focus on resolving underperforming businesses, especially in TV and kitchen appliances.

• Full-year sales and profit guidance was revised downward, mainly due to US tariffs and EV market slowdown.

• Dividend forecast remains at 40 yen per share, with a payout ratio above 30%.

Financial highlights

• Q2 FY2026 sales: ¥1,923.8 billion, down 10% year-on-year; sales excluding Automotive rose 2%.

• Adjusted operating profit: ¥90.4 billion (4.7% margin), down from ¥122.2 billion YoY.

• Net profit attributable to shareholders: ¥70.9 billion (3.7% margin), down from ¥118.3 billion YoY.

• Operating cash flow for H1 decreased to ¥298.4 billion, with net cash at negative ¥829 billion.

• EBITDA: ¥182.3 billion (9.5% margin), down from ¥241.7 billion YoY.

Outlook and guidance

• Full-year net sales forecast revised to ¥7,700.0 billion, a 9% decrease year-over-year.

• Adjusted operating profit forecast revised to ¥470.0 billion (6.1% margin), down ¥30 billion, factoring in US tariffs.

• Net profit forecast: ¥260.0 billion (3.4% margin), down ¥50 billion from prior guidance.

• Basic earnings per share for the full year forecast at ¥111.36; ROE: 5.5%.

• Dividend forecast unchanged at 40 yen per share.