Seiko Epson (6724) Q2 2027 earnings summary

Executive summary

• Q2 revenue rose 7.9% YoY to ¥373.9bn and business profit increased 154.8% to ¥45.0bn, with growth across segments and support from pricing and U.S. tariff refunds.

• H1 revenue rose 11.1% to ¥741.1bn and business profit increased 79.4% to ¥67.2bn; profit attributable to owners rose 139.3% to ¥44.7bn.

Financial highlights

• Q2 operating profit was ¥42.6bn, profit before tax ¥41.5bn, and profit attributable to owners ¥31.7bn, up 162.8% YoY; EPS was ¥99.07.

• H1 gross profit was ¥281.9bn, operating profit ¥63.2bn and profit before tax ¥62.2bn; profit attributable to owners was ¥44.655bn.

• Approved U.S. tariff refunds of ¥17.325bn were recognized as a reduction in cost of sales, boosting reported H1 results.

• Q2 currency effects added ¥23.8bn to revenue and ¥5.2bn to business profit; yen appreciation also contributed to foreign-exchange losses at subsequent profit levels.

Outlook and guidance

• Full-year revenue and business-profit forecasts remain ¥1,510bn and ¥105bn; operating profit rose ¥2bn to ¥103bn, profit before tax rose ¥1bn to ¥100bn, and attributable profit rose ¥3bn to ¥72bn.

• EPS is forecast at ¥226.39; forecast assumes ¥153/$ and ¥174/€ from Q3 onward.

• Precision Innovation guidance increased to ¥203bn revenue and ¥61bn segment profit; Office & Home Printing guidance fell to ¥700bn revenue and ¥54bn profit.

• Higher parts and crude-oil costs are included; planned pricing will not fully offset their full-year impact, and Phase 3 U.S. tariff refunds are included.

• Full-year outlook includes ¥46bn R&D costs, ¥85bn capital expenditure, ¥78bn depreciation and amortization, and ¥75bn free cash flow.