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Presentation materials for financial results6723Renesas Electronics CorporationElectrical Equipment and Precision Instruments

Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending December 2026

In the second quarter of the fiscal year ending December 2026, revenue increased 24.8% year on year and operating profit increased by ¥40.9 billion. Revenue and operating profit increased in both the Automotive and Industrial, Infrastructure and IoT businesses, while the company did not provide a full-year forecast and disclosed a forecast for the following quarter.

Worth reading
58In focus
Scored from 5 of 6 sections
Direction
Improvement
Direction inferred from the company’s description.
Scale
24.8
% (year-on-year change in Non-GAAP revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsSecond quarter of the fiscal year ending December 20267 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales4,053 Hundreds of millions of yen+24.8%
Operating profit1,327 Hundreds of millions of yen
Net income¥1,133 100 million profit for the period attributable to owners of the parent, Non-GAAP
Selling, general and administrative expenses¥1,026 100 million operating expenses
Gross Profit Margin
Rate58.1
Year-on-year change (points)1.3
Operating profit margin
Rate32.7
Year-on-year change (points)4.5
Results for the three months of the current quarterRevenue of ¥405.3 billion, gross margin of 58.1%, operating profit of ¥132.7 billion, operating margin of 32.7%, EBITDA of ¥154.3 billion, and profit for the period attributable to owners of the parent of ¥113.3 billion (all Non-GAAP)
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in gross profit
  • Lower operating expenses
  • Yen depreciation
  • Improved mix
  • Lower manufacturing costs

The company identifies the factors but does not state the amount attributable to each one.

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • ¥159
    AssumptionsUS dollar exchange rate for the third quarter of the fiscal year ending December 2026
  • ¥184
    AssumptionsEuro exchange rate for the third quarter of the fiscal year ending December 2026
  • ¥20 100 million per ¥1 change
    AssumptionsUS dollar exchange-rate sensitivity (revenue)
  • ¥9 100 million per ¥1 change
    AssumptionsUS dollar exchange-rate sensitivity (operating profit)
  • ¥2 100 million per ¥1 change
    AssumptionsEuro exchange-rate sensitivity (revenue)
  • ¥1 100 million per ¥1 change
    AssumptionsEuro exchange-rate sensitivity (operating profit)
New initiatives
  • Production at the Takasaki Plant will be phased out and the plant closed over the next 2–3 years
  • Research and development functions will be maintained and strengthened at the current Takasaki Plant site and in nearby areas
  • Following the Kumamoto earthquake, production at the Kawajiri Plant is scheduled to resume in stages from 5 August, while production at the Nishiki Plant is scheduled to resume in stages from the night of 29 July
Key KPIsA metric the company considers important as a management benchmark.
  • Company inventory DOI
    Year on year against the same period last yearSecond-quarter DOI decreased
  • Distribution-channel inventory WOI
    Year on year against the same period last yearSecond-quarter WOI decreased slightly
  • Front-end utilization rate
  • Free cash flow margin (2025)25.1 %
Segment results
  • Automobiles
    Revenue1,871
    Revenue unitHundreds of millions of yen
    Revenue growth15.9
    Operating profit644
    Operating profit unitHundreds of millions of yen
  • Industrial, Infrastructure and IoT
    Revenue2,163
    Revenue unitHundreds of millions of yen
    Revenue growth40
    Operating profit690
    Operating profit unitHundreds of millions of yen
  • Other
    Revenue151
    Revenue unitHundreds of millions of yen
    Revenue growth71.5
    Operating profit83
    Operating profit unitHundreds of millions of yen
Medium-term management plan targets
A sixfold increase in market capitalization was set out as the 2035 aspiration. Target year: 2035
Capital expenditures
¥226 100 million second quarter of the fiscal year ending December 2026
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredSecond quarter of the fiscal year ending December 2026
Net Sales4,053 Hundreds of millions of yen (YoY +24.8%)
Operating profit1,327 Hundreds of millions of yen
Net income¥1,133 100 million (profit for the period attributable to owners of the parent, Non-GAAP)
Gross Profit MarginRate 58.1 / Year-on-year change (points) 1.3
Operating profit marginRate 32.7 / Year-on-year change (points) 4.5
Selling, general and administrative expenses¥1,026 100 million (operating expenses)
Results for the three months of the current quarterRevenue of ¥405.3 billion, gross margin of 58.1%, operating profit of ¥132.7 billion, operating margin of 32.7%, EBITDA of ¥154.3 billion, and profit for the period attributable to owners of the parent of ¥113.3 billion (all Non-GAAP)
Segment resultsSegment Automobiles / Revenue 1,871 / Revenue unit Hundreds of millions of yen / Revenue growth 15.9 / Operating profit 644 / Operating profit unit Hundreds of millions of yen / Year-on-year operating profit growth Not disclosed, Segment Industrial, Infrastructure and IoT / Revenue 2,163 / Revenue unit Hundreds of millions of yen / Revenue growth 40 / Operating profit 690 / Operating profit unit Hundreds of millions of yen / Year-on-year operating profit growth Not disclosed, Segment Other / Revenue 151 / Revenue unit Hundreds of millions of yen / Revenue growth 71.5 / Operating profit 83 / Operating profit unit Hundreds of millions of yen / Year-on-year operating profit growth Not disclosed
Breakdown of Factors Affecting the ChangeFactors Increase in gross profit / Amount Not disclosed, Factors Lower operating expenses / Amount Not disclosed, Factors Yen depreciation / Amount Not disclosed, Factors Improved mix / Amount Not disclosed, Factors Lower manufacturing costs / Amount Not disclosed
Key KPIsIndicator name Company inventory DOI / Value Not disclosed / Year on year against the same period last year Second-quarter DOI decreased, Indicator name Distribution-channel inventory WOI / Value Not disclosed / Year on year against the same period last year Second-quarter WOI decreased slightly, Indicator name Front-end utilization rate / Value Not disclosed / Year on year against the same period last year Not disclosed, Indicator name Free cash flow margin (2025) / Value 25.1 % / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookAssumptions US dollar exchange rate for the third quarter of the fiscal year ending December 2026 / Value ¥159, Assumptions Euro exchange rate for the third quarter of the fiscal year ending December 2026 / Value ¥184, Assumptions US dollar exchange-rate sensitivity (revenue) / Value ¥20 100 million per ¥1 change, Assumptions US dollar exchange-rate sensitivity (operating profit) / Value ¥9 100 million per ¥1 change, Assumptions Euro exchange-rate sensitivity (revenue) / Value ¥2 100 million per ¥1 change, Assumptions Euro exchange-rate sensitivity (operating profit) / Value ¥1 100 million per ¥1 change
Medium-term management plan targetsA sixfold increase in market capitalization was set out as the 2035 aspiration. Target year: 2035
Capital expenditures¥226 100 million (second quarter of the fiscal year ending December 2026)
New initiativesProduction at the Takasaki Plant will be phased out and the plant closed over the next 2–3 years, Research and development functions will be maintained and strengthened at the current Takasaki Plant site and in nearby areas, Following the Kumamoto earthquake, production at the Kawajiri Plant is scheduled to resume in stages from 5 August, while production at the Nishiki Plant is scheduled to resume in stages from the night of 29 July
Items this document does not state (15)
Ordinary incomeFull-year earnings forecastProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The materials identify higher gross profit and lower operating expenses as factors behind the company-wide operating margin. For the gross margin, the materials cite the weaker yen, an improved product mix and lower manufacturing costs as positive factors, while citing a deteriorated product mix and higher manufacturing costs as negative factors for the Industrial, Infrastructure and IoT business.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending December 2026 | Renesas Electronics Corporation (6723) timely disclosure | Komori