NHK Spring (5991) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY2025 rose 0.7% year-over-year to ¥393.9 billion, but operating and ordinary profits declined due to foreign exchange pressures, increased fixed costs, and one-time U.S. expenses.

• Automotive market production volumes increased in North America and China, while Japan and Thailand saw marginal growth.

• HDD suspension demand increased despite a global HDD production decline, with data center demand supporting growth.

Financial highlights

• Net sales for 1H FY2025: ¥393.9 billion, up ¥2.7 billion year-over-year.

• Operating profit: ¥18.5 billion, down 19.2% year-over-year but up ¥1.3 billion vs. May forecast.

• Ordinary profit: ¥19.8 billion, down 26.5% year-over-year.

• Profit attributable to owners: ¥13.9 billion, down 35.5% year-over-year.

• Exchange rate fluctuations, higher costs, and one-time U.S. expenses were significant negative factors.

Outlook and guidance

• FY2025 full-year net sales forecast: ¥800.0 billion, flat vs. previous year and May forecast.

• Operating profit forecast: ¥47.0 billion, down ¥5.1 billion year-over-year.

• Profit attributable to owners forecast: ¥40.0 billion, down ¥8.1 billion year-over-year.

• U.S. tariffs expected to increase costs by ¥5.7 billion, with partial recovery factored in.

• Segment forecasts revised: Suspension Spring and Disk Drive Suspension raised, Seating and Industrial Machinery lowered.