Taiyo Yuden (6976) Q2 2027 earnings summary

Executive summary

• Q2 FY2027 net sales were ¥112.1B, up 20.8% YoY and 19.4% QoQ; operating profit was ¥13.4B, up 127.5% YoY and 177.7% QoQ, supported by higher volume, utilization and product mix.

• H1 FY2027 net sales rose 16.0% YoY to ¥206,034 million; operating profit increased 101.6% to ¥18,196 million and profit attributable to owners rose 46.8% to ¥8,135 million.

• FY2027 guidance was raised to ¥436,000 million net sales and ¥54,000 million operating profit, reflecting demand for high-end products, IT infrastructure and industrial equipment, and selling-price effects.

Financial highlights

• Q2 ordinary profit was ¥11.6B, up 48.3% YoY; profit attributable to owners was ¥5.6B, down 12.2% YoY but up 124.8% QoQ.

• Q2 gross margin was 27.6%, versus 23.1% in the prior-year quarter; operating margin was 11.9%, versus 6.3%.

• H1 ordinary profit rose 96.2% YoY to ¥15,906 million; gross profit was ¥52,344 million versus ¥39,656 million, and SG&A was ¥34,147 million versus ¥30,632 million.

• H1 operating cash flow was ¥31,989 million, investing cash outflow ¥11,829 million and financing cash outflow ¥6,798 million; free cash flow was ¥20.2B.

Outlook and guidance

• FY2027 forecast: net sales ¥436,000 million (+22.7% YoY), operating profit ¥54,000 million (+170.0%), ordinary profit ¥50,000 million (+107.2%) and net income ¥35,000 million (+136.4%).

• Versus August guidance, net sales increased ¥12.0B and operating profit ¥9.0B; forecast operating margin is 12.4%, up 1.8 percentage points. Q3-onward exchange-rate assumption is US$1:¥156.

• Q3 sales are forecast flat to +4% QoQ; capacitors and inductors +1% to +5% each, while Others are forecast down 8% to 12%.

• FY2027 product forecasts: capacitors ¥324.5B (+28.9% YoY), inductors ¥74.5B (+15.8%) and Others ¥37.0B (-5.7%).

• FY2027 dividend forecast remains ¥90 per share, comprising ¥45 interim and ¥45 year-end; forecast payout ratio is 34.5% and DOE 3.7%.