Rinnai (5947) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales reached a record ¥239,920 million, up 10.9% YoY; operating income fell 5.2% to ¥21,541 million and parent net income fell 12.6% to ¥13,908 million.

• Overseas growth and yen depreciation supported revenue, while higher raw material costs and a sharp profit decline in China weighed on earnings.

Financial highlights

• Ordinary income decreased 9.7% to ¥22,822 million; income before taxes was ¥22,525 million versus ¥26,362 million in H1 FY2026.

• Gross profit was ¥83,502 million versus ¥75,936 million; SG&A was ¥61,961 million versus ¥53,210 million.

• Product sales: water heaters ¥138,754 million (+8.2%), kitchen appliances ¥48,324 million (+8.1%), air-conditioning appliances ¥12,250 million (+14.0%) and commercial equipment ¥6,186 million (+20.8%).

• Raw materials had a ¥4,960 million adverse impact on operating income; cost reductions added ¥3,460 million and FX added ¥870 million.

• Comprehensive income rose 130.5% to ¥23,718 million, supported by positive foreign currency translation adjustments.

Outlook and guidance

• FY2027 forecasts unchanged: net sales ¥500,000 million (+6.3%), operating income ¥50,500 million (-0.1%), ordinary income ¥54,100 million (-6.2%) and parent net income ¥36,300 million (+0.4%).

• FY2027 EPS forecast is ¥262.71; dividends are forecast at ¥53 per share for the second quarter and ¥106 for the full year.

• H1 results exceeded plan excluding U.S. tariff refunds; forecasts remain exposed to raw material prices and developments in China.