ROHM (6963) Q2 2026 earnings summary

Executive summary

• H1 net sales rose 5.3% YoY to ¥244,228 million, driven by strong consumer demand and improved factory utilization.

• Operating profit reached ¥7,653 million, reversing a ¥974 million loss; net profit attributable to owners rose 398.9% to ¥10,318 million.

• The new three-year plan shifts focus from top-line expansion to profit generation through structural reform and cost reductions.

• FY sales guidance rose to ¥460bn; operating profit and net profit forecasts are ¥5bn and ¥9bn, respectively.

• H2 sales are expected to slow, with a projected H2 loss, while full-year profitability is maintained.

Financial highlights

• H1 operating profit improved ¥8.5bn from a loss; sales added ¥12.2bn while FX reduced operating profit by ¥5.4bn.

• Organic operating-profit improvement was ¥17.6bn; inventory and materials had a combined ¥19.1bn negative impact, including ¥11.6bn from inventory.

• Fixed expenses fell ¥15.5bn in H1; gross profit increased to ¥58,450 million from ¥56,693 million.

• Changing depreciation from declining-balance to straight-line reduced depreciation expense by ¥7,668 million and lifted H1 operating profit by ¥6,247 million.

• H1 ordinary profit was ¥13,422 million, versus a ¥129 million loss, aided by foreign-exchange gains.

Outlook and guidance

• FY net sales forecast increased from ¥440bn to ¥460bn (+2.6% YoY); operating profit forecast is ¥5bn and net profit forecast is ¥9bn.

• FY sales growth forecast: automotive turns positive, consumer reaches +14%, and ICs and discrete semiconductors each grow 4%+.

• FY operating-profit plan includes ¥14.7bn from reversal of the prior-year inventory write-down and ¥32bn of fixed-cost reductions, offset by a ¥17bn FX impact.

• FY2028 targets: net sales above ¥500bn, operating margin above 20% and ROE above 9%; strategy prioritizes profitability over near-term scale.