Murata Manufacturing (6981) Q2 2026 earnings summary

Executive summary

• Revenue for the first half of FY2025 reached 902.8 billion yen, up 2.2% year-on-year, driven by strong demand in AI servers, data centers, automotive, and capacitors for servers and distributors, offsetting declines in high-frequency modules for smartphones; excluding FX effects, revenue rose 5.5%.

• Operating profit increased 4.4% year-on-year to 165.1 billion yen, with a 13.8% rise excluding FX effects, supported by higher capacity utilization, cost reductions, and higher operation rates.

• Profit attributable to owners of parent rose 1.6% year-on-year to 132.4 billion yen.

• Comprehensive income surged 59.7% year-on-year to 148.6 billion yen, reflecting improved other comprehensive income, especially from exchange differences.

• The full-year forecast was revised upward, with revenue projected at 1,740.0 billion yen and operating profit at 280.0 billion yen, reflecting yen depreciation and robust demand.

Financial highlights

• First half operating profit margin improved to 18.3% from 17.9% year-on-year.

• Gross profit for the period was 380.9 billion yen, with a gross margin of 42.2%.

• Basic earnings per share increased to 71.77 yen from 69.45 year-on-year.

• Free cash flow for the first half was 102.3 billion yen, down 16.5 billion yen year-on-year due to a smaller reduction in inventories.

• Cash and cash equivalents at period end were 582.4 billion yen, up 10.7 billion yen from the previous year.

Outlook and guidance

• Full-year revenue and profit guidance raised due to easing recession concerns, yen depreciation, and robust demand for electronic components in AI servers, mobility, and smartphones; a reactionary decline in the second half is expected after front-loaded demand in smartphones.

• FY2025 revenue projected at 1,740.0 billion yen and operating profit at 280.0 billion yen.

• Annual dividend planned at 60 yen per share, up from 57 yen in FY2024.

• Assumed exchange rate for the second half is 145 yen per US dollar.

• Profit attributable to owners of parent for the full year forecast at 220.0 billion yen.