Sinfonia Technology (6507) Q2 2026 earnings summary

Executive summary

• Achieved record-high first-half FY2025 results, with strong order momentum and sales growth, especially in Motion Equipment and Engineering & Services segments.

• Net sales rose 7.8% year-over-year to ¥55,796 million for the six months ended September 30, 2025, with operating profit up 6.0% to ¥6,086 million and profit attributable to owners of parent up 6.4% to ¥4,551 million.

• Orders received grew 6.4% year-over-year, and the balance of orders received rose 23.0% to ¥136,082 million.

• Upward revision of full-year order forecast to ¥1,500 billion, reflecting robust demand in aerospace and other key areas.

• Strategic focus on expanding aerospace and semiconductor businesses, with significant investments in production capacity and R&D.

Financial highlights

• First-half FY2025 orders received: ¥769.5 billion, up 6.4% year-over-year; net sales: ¥558.0 billion, up 7.8%.

• Operating profit rose 6.0% to ¥60.9 billion; net profit increased 6.4% to ¥45.5 billion.

• Gross profit increased to ¥15,192 million from ¥13,531 million year-over-year.

• R&D expenses up 14.8% to ¥19.7 billion; capital expenditures surged 205% to ¥49.4 billion.

• Overseas net sales increased 3.7% to ¥17,201 million, though the overseas sales ratio declined by 1.2 points to 30.8%.

Outlook and guidance

• Full-year FY2025 order forecast raised by ¥50 billion to ¥1,500 billion, with net sales projected at ¥1,250 billion (+4.9%).

• Operating profit forecast at ¥165 billion (+4.9%), but net profit expected to decline 6.6% to ¥113 billion due to absence of prior-year extraordinary gains.

• Profit attributable to owners of parent is forecast to decrease 6.6% to ¥11,300 million, with projected EPS of ¥400.61.

• Annual dividend forecast is ¥120.00 per share.

• R&D and capital expenditures to increase significantly, supporting growth initiatives.