Sumitomo Electric Industries (5802) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales reached ¥2,764,912 million, up 16.5% YoY; operating profit rose 43.5% to ¥219,567 million and parent-attributable profit rose 62.7% to ¥159,384 million.

• FY2027 full-year forecasts were revised to record net sales of ¥5,750bn, operating profit of ¥500bn, ordinary income of ¥515bn and parent-attributable profit of ¥370bn.

Financial highlights

• Operating margin increased to 7.9% from 6.4% YoY; ordinary income was ¥231,241 million versus ¥155,516 million, and profit before income taxes was ¥236,267 million versus ¥158,116 million.

• Gross profit was ¥549,475 million versus ¥449,979 million; SG&A was ¥329,908 million versus ¥296,958 million.

• Operating cash flow was ¥139,394 million, investing cash outflow ¥122,235 million and free cash flow ¥17.2bn, compared with ¥251,944 million, ¥118,100 million and ¥133.8bn, respectively, a year earlier.

Outlook and guidance

• FY2027 forecast: net sales ¥5,750bn, operating profit ¥500bn, ordinary income ¥515bn and parent-attributable profit ¥370bn; forecasts were revised upward.

• Revised guidance exceeds the previous plan by ¥350bn for sales, ¥50bn for operating profit, ¥55bn for ordinary income and ¥30bn for parent-attributable profit.

• Forecast basic EPS is ¥118.60; the ¥44-per-share dividend forecast comprises ¥19 for the second quarter and ¥25 at year-end, on a post-split basis.