Stanley Electric (6923) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales were ¥303,093m, up 22.0% YoY; operating profit was ¥18,405m, down 0.3%, in line with the prior year and above forecast.

• Newly consolidated subsidiaries, solid Americas and Asia-Pacific motorcycle results, and favorable FX supported sales despite challenging China conditions.

Financial highlights

• Ordinary profit was ¥19,233m, down 12.5% YoY; profit attributable to owners of parent was ¥8,657m, down 14.8%.

• Basic EPS was ¥70.39 versus ¥69.37 in the prior-year period; operating margin was 6.1%, down 1.4pt YoY.

• Capital expenditures were ¥30.5bn, up 20.2%, including ¥10.0bn of strategic investments; R&D expenses were ¥18.2bn and depreciation was ¥24.6bn.

Outlook and guidance

• FY2027 forecast remained unchanged: sales ¥622bn, operating profit ¥55bn, ordinary profit ¥58bn and parent-attributable profit ¥34bn.

• Forecast basic EPS was ¥276.38; forecast exchange rates were USD/JPY ¥150.00, EUR/JPY ¥180.00 and CNY/JPY ¥22.02.