TDK (6762) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY March 2026 rose 8.6% year-on-year to ¥1,183.4 billion, with operating profit up 10.7% to ¥147.6 billion, both record highs, driven by strong ICT, HDD, and industrial equipment demand despite weak automotive BEV sales.

• Net profit attributable to owners of parent increased 5.4% year-on-year to ¥111.4 billion, with EPS at ¥58.70 post-share split.

• Q2 net sales reached ¥647.6 billion, up 13.5% year-on-year, and net profit for the quarter surged 51.8% to ¥69.9 billion.

• Yen appreciation against the dollar reduced net sales by ¥41.7 billion and operating profit by ¥9.2 billion.

Financial highlights

• H1 net sales: ¥1,183.4 billion (+8.6% YoY); operating profit: ¥147.6 billion (+10.7% YoY); operating margin: 12.5% (+0.3 pts YoY); gross profit margin stable at 32.5%.

• H1 net profit attributable to owners: ¥111.4 billion (+5.4% YoY); EPS: ¥58.70 (post-split).

• Q2 net sales: ¥647.6 billion (+13.5% YoY); operating profit: ¥91.2 billion (+20.9% YoY); operating margin: 14.1% (+0.9 pts YoY).

• Free cash flow for H1: ¥61.1 billion; cash and cash equivalents at period end: ¥795.0 billion, up ¥97.7 billion from March.

• Total assets increased by ¥415.98 billion to ¥3,957.39 billion; equity attributable to owners of parent rose by ¥112.97 billion to ¥1,913.04 billion.

Outlook and guidance

• Full-year FY March 2026 projections revised upward: net sales ¥2,370.0 billion (+7.5% YoY), operating profit ¥245.0 billion (+9.3%), net profit ¥180.0 billion (+7.7%).

• Annual dividend forecast raised to ¥32.00 per share post-split.

• One-time restructuring costs of approximately ¥10.0 billion expected for FY March 2026.

• Exchange rate assumption for H2 updated to ¥145/USD.

• Nearline HDD and automobile production forecasts revised upward; smartphone production expected flat.