Toyota Boshoku Corporation (3116) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 9.9% YoY to ¥1,068.3bn, while operating profit fell 20.3% to ¥29.5bn; parent-attributable profit increased 29.0% to ¥22.5bn.

• Lower volumes in China, Middle East impacts, higher overhead and quality-related costs pressured operating profit.

• FY2027 operating-profit guidance was cut from ¥76.0bn to ¥71.0bn; the ¥86 annual dividend plan remains unchanged.

Financial highlights

• H1 revenue was ¥1,068.3bn versus ¥972.2bn YoY; operating profit was ¥29.5bn versus ¥37.0bn, and profit before tax was ¥31.6bn versus ¥39.4bn.

• Gross profit was ¥102.8bn versus ¥102.1bn; profit for the period rose to ¥25.0bn from ¥22.0bn as income tax expense fell to ¥6.6bn from ¥17.5bn.

• Parent-attributable profit rose 29.0% to ¥22.5bn, including the effect of deferred tax asset recognition; basic EPS increased to ¥125.89 from ¥97.56.

• Seat volume was 4.12m units versus 4.10m; SUV/MPV volume increased to 2.32m from 2.18m, while compact and medium volumes declined.

• Operating cash flow was ¥40.9bn versus ¥56.7bn; investing and financing cash outflows were ¥31.3bn and ¥18.9bn, respectively.

Outlook and guidance

• FY2027 revenue forecast is ¥2,110.0bn, versus the prior ¥2,100.0bn forecast; operating-profit guidance was reduced from ¥76.0bn to ¥71.0bn and profit-before-tax guidance from ¥80.0bn to ¥75.0bn.

• Forecast parent-attributable profit is ¥51.0bn, including deferred tax asset recognition; basic EPS is ¥285.56.

• Forecast seat volume is 8.10m units versus FY2026 actual of 8.21m; exchange-rate assumptions include ¥155/USD, ¥180/EUR, ¥4.7/THB and ¥23.3/CNY.

• Forecasts were revised from July 31, 2026, based on Q2 results and sales trends from Q3 onward; actual results may differ due to risks and uncertainties.

• Annual dividend remains ¥86 per share, split equally between interim and year-end payments; DOE target is at least 3%.