Sumitomo Heavy Industries (6302) Q2 2026 earnings summary

Executive summary

• Orders for Q2 FY2026 reached ¥607.1 billion, up 13% year-over-year, with net sales at ¥554.2 billion, up 12%, and operating profit at ¥37.4 billion, up 73% year-over-year.

• Ordinary profit climbed 81% to ¥34.1 billion, and profit attributable to owners of parent increased 78% to ¥22.0 billion.

• Growth was driven by strong capital investment and exports in Japan and North America, with Europe recovering and China remaining sluggish.

• The economic environment was uncertain due to geopolitical tensions and rising oil prices.

Financial highlights

• Operating profit margin improved to 6.8% from 4.4% year-over-year.

• Earnings per share for the first half was ¥184.40, compared to ¥103.17 in the prior year.

• Comprehensive income improved to ¥35.5 billion from a loss of ¥7.9 billion year-over-year.

• Free cash flow for 1H FY2026 was ¥19.3 billion, up from ¥15.8 billion in the prior year.

• Profit attributable to owners of parent rose to ¥22.0 billion, up ¥9.6 billion year-over-year.

Outlook and guidance

• FY2026 orders forecast raised to ¥1,180.0 billion, net sales to ¥1,120.0 billion, and operating profit to ¥68.0 billion, all above previous forecasts.

• Profit attributable to owners of parent forecast at ¥35 billion, EPS at ¥294.45.

• ROIC expected at 5.3%, with operating profit margin at 6.1%.

• Dividend per share forecast at ¥145.

• Main exchange rate assumptions: USD/JPY 155, EUR/JPY 180.