NSK (6471) Q2 2026 earnings summary

Executive summary

• Sales and operating income increased year-over-year in the first half of FY2025/FY2026, driven by the consolidation of the Steering Business and improved profitability across core segments.

• The Steering Business was reconsolidated as a wholly owned subsidiary from September 2025, now reported as an independent segment, contributing significantly to growth.

• Progress exceeded earlier forecasts, with strong contributions from Automotive and Industrial Machinery segments.

• Structural reforms and cost transfer strategies, especially regarding US tariffs, are progressing as planned.

• One-off impacts from the NS&C acquisition included a ¥7,272 million gain on bargain purchase and a ¥4,662 million loss on step acquisition.

Financial highlights

• First half sales reached ¥412.3 billion, up ¥14.6 billion (+3.7%) year-over-year; operating income rose to ¥16.5 billion, up ¥6.8 billion (+69.7%).

• Net income attributable to owners of the parent was ¥9.3 billion, up ¥5.6 billion (+150.1%) year-over-year.

• Full-year forecast revised to ¥885 billion in sales and ¥30 billion in operating income, with net profit forecast at ¥16 billion.

• Interim and annual dividends maintained at ¥17 and ¥34 per share, respectively.

• Basic earnings per share rose to ¥19.06 in H1 and is forecast at ¥32.71 for the full year.

Outlook and guidance

• Full-year sales forecast for FY2025 is ¥885 billion (+11.1% YoY), operating income projected at ¥30 billion (+5.4%), and net income at ¥16 billion (+50.3%).

• Operating income margin forecast at 3.4% for the year; 4.5% excluding one-time expenses.

• Tariff impacts and supply chain risks (rare earths, semiconductors) are being monitored but not fully reflected in forecasts.

• Exchange rate assumptions revised for a weaker Yen; U.S. tariff impacts to be passed on to sales prices.

• Automotive production volume assumed flat; gradual recovery expected in industrial machinery in the second half.