Sumitomo Electric Industries (5802) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY2025 reached ¥2,373.5bn, up 5.6% year-over-year, with operating profit up 28.2% to ¥153.0bn and profit attributable to owners rising 29.3% to ¥97.9bn.

• Achieved record-high sales, operating profit, and OP rate in the first half, with significant growth across all major segments.

• Comprehensive income increased slightly by 0.5% year-over-year to ¥144.9bn.

Financial highlights

• Gross profit increased from ¥395.3bn to ¥450.0bn year-over-year.

• Operating profit margin improved to 6.4%, up from 5.3% in 1H FY2024.

• Ordinary income rose to ¥155.5bn, up 27.8% year-over-year.

• Free cash flow improved to ¥133.8bn, up ¥82.5bn year-over-year.

• Net cash provided by operating activities rose to ¥251.9bn from ¥156.3bn year-over-year.

Outlook and guidance

• Full-year FY2025 net sales forecast revised up to ¥4,750.0bn, with operating profit expected at ¥340.0bn.

• Profit attributable to owners of parent expected to increase 18.7% to ¥230.0bn.

• Dividend per share raised to ¥118, with payout ratio targeted at approximately 40% of ordinary profits, excluding capital gains.

• Basic earnings per share forecasted at ¥294.90 for the full year.

• Impact of U.S. tariffs revised to ¥10bn in OP losses, down from previous ¥30bn estimate.