Worth reading
79Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
381
¥100 million (year-on-year increase in business profit)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentation materialsSecond quarter of the fiscal year ending March 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥10,844 100 million+8.8%
Ordinary income¥567 100 million +60.6%profit before tax for the quarter
Net income¥309 100 million +40.0%profit for the quarter attributable to owners of the parent
Selling, general and administrative expenses¥1,678 100 million
Gross Profit Margin
Rate19.8%
Results for the three months of the current quarter
Revenue¥540.8 billion
Business profit¥38.1 billion
Profit before tax for the quarter¥21.9 billion
Quarterly profit attributable to owners of the parent¥15.2 billion
Full-year earnings forecast
Orders received¥2,490.0 billion
Revenue¥2,560.0 billion
Business profit¥185 billion
Profit before tax¥161.0 billion
Profit for the year attributable to owners of the parent¥118 billion
Free cash flow¥20.0 billion
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Foreign-Exchange Movements+¥23.7 billion
Sales volatility+¥8.3 billion
Cost increases resulting from US tariff policy-¥6.2 billion
Changes in sales mix and other factors+¥15.4 billion
Share of profit or loss of investments accounted for using the equity method+¥4.1 billion
Change in SG&A expenses-¥7.2 billion
Total+¥38.1 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
USD/JPY150
EUR/JPY180
The situation in the Middle East.Assumes the current situation continues through the end of March 2027
Profit/(loss) impact of the situation in the Middle EastApproximately -¥3.0 billion
Profit/(loss) impact of U.S. tariff policyApproximately -¥28.0 billion
Foreign-currency exposure affecting earningsUSD 2.96 billion
New initiatives
- Rebuild the aerospace business supply chain and production expansion framework
- Promoting the development of products for the Ministry of Defense and fulfilling mass-production contracts
- Development and enhanced support for stand-off electronic warfare aircraft, new anti-ship guided missiles, multi-purpose collaborative and attritable unmanned aircraft, edge AI autonomous coordination, and small jet engines
- Develop environmental technologies using the NEDO Green Innovation Fund
Key KPIsA metric the company considers important as a management benchmark.
- Revenue-weighted average rate (USD/JPY)¥158.18Year on year against the same period last year+¥13.06
- Foreign-currency exposure affecting earnings13.8 USD 100 millionYear on year against the same period last year+USD 240 million
- Cash Conversion Cycle173 DaysYear on year against the same period last year+18 days
- Number of Boeing 767 aircraft sold10 satellitesYear on year against the same period last year-5 aircraft
- Number of Boeing 777 aircraft sold14 satellitesYear on year against the same period last year+2 aircraft
- Number of Boeing 777X aircraft sold10 satellitesYear on year against the same period last year+7 aircraft
- Number of Boeing 787 aircraft sold42 satellitesYear on year against the same period last year+17 aircraft
- Number of V2500 major aero-engine components sold under risk-sharing arrangements15 MachinesYear on year against the same period last year+9 units
- Number of PW1100G major aero-engine components sold under risk-sharing arrangements347 MachinesYear on year against the same period last year+26 units
Segment results
Aerospace Systems
Orders received¥204.1 billion (down ¥81.0 billion year on year)
Revenue¥282.6 billion (up ¥40.0 billion year on year)
Business profit/(loss)¥10.0 billion (down ¥0.1 billion year on year)
Vehicle
Orders received¥57.3 billion (up ¥29.5 billion year on year)
Revenue¥109.9 billion (down ¥9.4 billion year on year)
Business profit/(loss)¥3.4 billion (down ¥1.5 billion year on year)
Energy Solution & Marine
Orders received¥227.2 billion (down ¥10.2 billion year on year)
Revenue¥185.2 billion (down ¥2.0 billion year on year)
Business profit/(loss)¥30.5 billion (up ¥10.6 billion year on year)
Precision Machinery & Robotics
Orders received¥178.9 billion (up ¥52.6 billion year on year)
Revenue¥146.8 billion (up ¥29.8 billion year on year)
Business profit/(loss)¥20.8 billion (up ¥16.6 billion year on year)
Power Sports & Engine
Orders received¥318.4 billion (up ¥25.6 billion year on year)
Revenue¥318.9 billion (up ¥26.1 billion year on year)
Business profit/(loss)¥15.5 billion (up ¥10.7 billion year on year)
Other
Orders received¥55.0 billion (up ¥9.0 billion year on year)
Revenue¥40.7 billion (up ¥3.5 billion year on year)
Business profit/(loss)¥3.3 billion (up ¥1.6 billion year on year)
Financial targets
After-tax ROIC
Full-year forecast8.9%
Previous-period results9.0%
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
The situation in the Middle East.Approximately -¥3.0 billion (higher procurement and fuel prices, etc.)
U.S. tariff policyApproximately -¥28.0 billion
Orders received and order backlog
Orders received¥1,041.2 billion (cumulative 2Q)
Capital expenditures
561 billion yen expenditures for the acquisition of property, plant and equipment and intangible assets, cumulative 2Q
| Item | Details |
|---|---|
| Document type | Earnings presentation materials |
| Fiscal Period Covered | Second quarter of the fiscal year ending March 2026 |
| Net Sales | ¥10,844 100 million (YoY +8.8%) |
| Ordinary income | ¥567 100 million (profit before tax for the quarter) (YoY +60.6%) |
| Net income | ¥309 100 million (profit for the quarter attributable to owners of the parent) (YoY +40.0%) |
| Gross Profit Margin | Rate 19.8% / Year-on-year change (points) Not disclosed |
| Selling, general and administrative expenses | ¥1,678 100 million |
| Results for the three months of the current quarter | Revenue ¥540.8 billion / Business profit ¥38.1 billion / Profit before tax for the quarter ¥21.9 billion / Quarterly profit attributable to owners of the parent ¥15.2 billion |
| Full-year earnings forecast | Orders received ¥2,490.0 billion / Revenue ¥2,560.0 billion / Business profit ¥185 billion / Profit before tax ¥161.0 billion / Profit for the year attributable to owners of the parent ¥118 billion / Free cash flow ¥20.0 billion |
| Segment results | Aerospace Systems Orders received ¥204.1 billion (down ¥81.0 billion year on year) / Revenue ¥282.6 billion (up ¥40.0 billion year on year) / Business profit/(loss) ¥10.0 billion (down ¥0.1 billion year on year) / Vehicle Orders received ¥57.3 billion (up ¥29.5 billion year on year) / Revenue ¥109.9 billion (down ¥9.4 billion year on year) / Business profit/(loss) ¥3.4 billion (down ¥1.5 billion year on year) / Energy Solution & Marine Orders received ¥227.2 billion (down ¥10.2 billion year on year) / Revenue ¥185.2 billion (down ¥2.0 billion year on year) / Business profit/(loss) ¥30.5 billion (up ¥10.6 billion year on year) / Precision Machinery & Robotics Orders received ¥178.9 billion (up ¥52.6 billion year on year) / Revenue ¥146.8 billion (up ¥29.8 billion year on year) / Business profit/(loss) ¥20.8 billion (up ¥16.6 billion year on year) / Power Sports & Engine Orders received ¥318.4 billion (up ¥25.6 billion year on year) / Revenue ¥318.9 billion (up ¥26.1 billion year on year) / Business profit/(loss) ¥15.5 billion (up ¥10.7 billion year on year) / Other Orders received ¥55.0 billion (up ¥9.0 billion year on year) / Revenue ¥40.7 billion (up ¥3.5 billion year on year) / Business profit/(loss) ¥3.3 billion (up ¥1.6 billion year on year) |
| Breakdown of Factors Affecting the Change | Foreign-Exchange Movements +¥23.7 billion / Sales volatility +¥8.3 billion / Cost increases resulting from US tariff policy -¥6.2 billion / Changes in sales mix and other factors +¥15.4 billion / Share of profit or loss of investments accounted for using the equity method +¥4.1 billion / Change in SG&A expenses -¥7.2 billion / Total +¥38.1 billion |
| Key KPIs | Indicator Revenue-weighted average rate (USD/JPY) / Value ¥158.18 / Year on year against the same period last year +¥13.06, Indicator Foreign-currency exposure affecting earnings / Value 13.8 USD 100 million / Year on year against the same period last year +USD 240 million, Indicator Cash Conversion Cycle / Value 173 Days / Year on year against the same period last year +18 days, Indicator Number of Boeing 767 aircraft sold / Value 10 satellites / Year on year against the same period last year -5 aircraft, Indicator Number of Boeing 777 aircraft sold / Value 14 satellites / Year on year against the same period last year +2 aircraft, Indicator Number of Boeing 777X aircraft sold / Value 10 satellites / Year on year against the same period last year +7 aircraft, Indicator Number of Boeing 787 aircraft sold / Value 42 satellites / Year on year against the same period last year +17 aircraft, Indicator Number of V2500 major aero-engine components sold under risk-sharing arrangements / Value 15 Machines / Year on year against the same period last year +9 units, Indicator Number of PW1100G major aero-engine components sold under risk-sharing arrangements / Value 347 Machines / Year on year against the same period last year +26 units |
| Assumptions Underlying the Business Outlook | USD/JPY 150 / EUR/JPY 180 / The situation in the Middle East. Assumes the current situation continues through the end of March 2027 / Profit/(loss) impact of the situation in the Middle East Approximately -¥3.0 billion / Profit/(loss) impact of U.S. tariff policy Approximately -¥28.0 billion / Foreign-currency exposure affecting earnings USD 2.96 billion |
| Risk amount incorporated into the outlook | The situation in the Middle East. Approximately -¥3.0 billion (higher procurement and fuel prices, etc.) / U.S. tariff policy Approximately -¥28.0 billion |
| Financial targets | After-tax ROIC Full-year forecast 8.9% / Previous-period results 9.0% |
| Capital expenditures | 561 billion yen (expenditures for the acquisition of property, plant and equipment and intangible assets, cumulative 2Q) |
| Orders received and order backlog | Orders received ¥1,041.2 billion (cumulative 2Q) |
| New initiatives | Rebuild the aerospace business supply chain and production expansion framework, Promoting the development of products for the Ministry of Defense and fulfilling mass-production contracts, Development and enhanced support for stand-off electronic warfare aircraft, new anti-ship guided missiles, multi-purpose collaborative and attritable unmanned aircraft, edge AI autonomous coordination, and small jet engines, Develop environmental technologies using the NEDO Green Innovation Fund |
Items this document does not state (13)
Operating profitOperating profit marginProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesMedium-term management plan targetsAnnual DividendPayout ratioAcquisition of treasury sharesMarket 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.US IEEPA tariff refunds, litigation settlement proceeds, gains on the sale of subsidiary shares, higher sales volumes, improved profitability, fixed-cost reductions, the weaker yen, and higher share of profit of investments accounted for using the equity method pushed up profit.
How to read this page
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