Nippon Avionics boosts FY26 earnings outlook on strong defense spending

Nippon Avionics (TSE:6946) has revised its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026, upward. The company now projects net sales of JPY 25,000m, an 11.1% increase from the previous forecast of JPY 22,500m. Operating profit is expected to reach JPY 4,000m (up 25.0% from JPY 3,200m), ordinary profit JPY 3,900m (up 25.8% from JPY 3,100m), and profit attributable to owners of parent JPY 2,760m (up 25.5% from JPY 2,200m), resulting in earnings per share of JPY 186.63.

This positive revision is primarily attributed to a substantial increase in orders for information systems, benefiting from high defense budgets, and robust progress in electronic devices. The company's second-quarter results for the fiscal year ending March 2026 already showed strong growth, with net sales of JPY 12,703m (up 39.5% year-on-year) and profit attributable to owners of parent of JPY 1,300m (up 76.9% year-on-year).

The information systems segment reported a significant rise in orders received to JPY 22,068m and an increase in net sales to JPY 10,158m for the first half, while the electronic devices segment also saw increased orders received of JPY 2,200m and sales of JPY 2,545m. The company's dividend forecast remains unchanged, with a projected year-end dividend of JPY 10.00 per share.