Shimadzu (7701) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 10.0% YoY to ¥281,984 million; operating profit increased 18.3% to ¥37,359 million and attributable net income rose 19.6% to ¥28,264 million.

• Operating margin was 13.2%, up 0.9pt YoY; sales and operating income exceeded Q1 assumptions.

• Semiconductor demand and biopharmaceutical investment supported growth; the full-year forecast was revised upward.

Financial highlights

• Ordinary profit rose 23.5% to ¥38,729 million; EBITDA increased 16% to ¥48.5B and operating profit before goodwill and other intangible amortization rose 18.0% to ¥38,103 million.

• H1 sales rose across all major regions: Japan +6%, overseas +13.0%, the Americas +13.7%, Europe +17.9%, China +5.2% and other Asia +21.5%.

• Operating income benefited from higher sales (+¥4.1B), efficiency (+¥2.5B), value-added pricing (+¥3.5B) and tariff refunds (+¥1.2B); human-capital investment reduced profit by ¥3.7B.

• Q2 sales grew 10% to ¥151.4B and operating income before amortization rose 19% to ¥23.5B; net income fell 5% to ¥14.9B. Ordinary income rose 1% to ¥20.2B.

Outlook and guidance

• FY2027 forecast: sales ¥630,000 million, operating profit ¥84,000 million, ordinary profit ¥85,000 million, attributable profit ¥61,000 million and EPS ¥211.21.

• Revised versus prior forecast: sales +¥10,000 million, operating profit +¥4,000 million, ordinary profit +¥4,000 million and attributable profit +¥2,000 million.

• Operating profit before goodwill amortization forecast at ¥89,000 million, up 18.4% YoY; revisions reflect H1 progress and expanded semiconductor-related demand.

• FY2027 annual dividend forecast increased to ¥72 per share from ¥69, including ¥28 interim and ¥44 year-end; payout ratio expected at 34.1%.