Harmonic Drive Systems beats H1 forecasts with strong profit growth

Harmonic Drive Systems Inc. reported actual consolidated net sales of 27,838 million yen for the first half of the fiscal year ending March 31, 2026, surpassing its forecast of 27,000 million yen. Operating profit surged to 465 million yen, significantly higher than the 300 million yen forecast, while ordinary profit reached 502 million yen, well above the 200 million yen projection. Profit attributable to owners of parent was 317 million yen, exceeding the 300 million yen forecast. These positive variances were primarily attributed to higher-than-expected sales in China and North America, coupled with lower selling, general, and administrative expenses.

Non-consolidated results also demonstrated strong performance, with net sales of 15,628 million yen against a forecast of 15,500 million yen. Operating profit reached 250 million yen (forecast: 100 million yen), ordinary profit 151 million yen (forecast: 0 million yen), and profit 206 million yen (forecast: 100 million yen). This performance was mainly driven by reduced selling, general, and administrative expenses.

The company also announced corrections to its prior "Consolidated Financial Results for the Six Months Ended September 30, 2024," specifically impacting segment information for Japan. The corrected segment profit (ordinary profit) for Japan for that period is now 182,821 thousand yen, a change from the previously reported 2,455,669 thousand yen. However, these corrections did not affect the consolidated balance sheets, statements of income, or cash flows for the period.