Sanyo Denki (6516) Q2 2026 earnings summary

Executive summary

• Operating revenue for FY 2025 H1 rose 9.2% year-over-year to $341M (¥50,784 million), with operating profit up 59.1% to $32M (¥4,848 million) and interim profit up 119.3% to $24M (¥3,509 million).

• Orders received increased 31.6% to ¥53,408 million, and order backlog grew 0.3% to ¥38,506 million.

• All business segments reported revenue growth, with strong demand in AI servers, communication equipment, and factory automation, and signs of recovery in the Chinese market.

• The company is executing its 9th medium-term management plan, focusing on new product launches, production expansion, and market development.

• Global economic instability from US-China tariffs impacted markets, but demand in key sectors remained robust.

Financial highlights

• Gross profit margin improved to 27.6% from 25.4% year-over-year, with gross profit rising to ¥14,023 million from ¥11,838 million.

• Interim dividend increased to $0.67 per share, and basic earnings per share rose to ¥98.76, reflecting a three-for-one stock split.

• Equity rose by $30M to $791M at mid-FY 2025, with total assets at ¥152,213 million, up from ¥145,628 million.

• Comprehensive income reached ¥6,416 million, reversing a loss of ¥1,719 million in the prior year.

• Cash and cash equivalents increased to ¥30,327 million, up ¥1,428 million from March 31, 2025.

Outlook and guidance

• FY 2025/2026 full-year revenue forecast is $719M (¥107,100 million, +9.5% YoY), with operating profit expected at $77M (¥11,550 million, +45.5%) and net profit at $57M (¥8,500 million, +50.8%).

• Basic EPS for the full year is forecast at ¥237.59, reflecting the stock split.

• The company targets a 10%+ ROE and a 35% total payout ratio for shareholders.

• New factory in Vietnam to begin operations in 2027, expanding production capacity.

• No revisions have been made to the previously announced business results forecast.