Stanley Electric hikes dividend after strong H1, upgrades outlook

Stanley Electric reported H1 FY2026 net sales of JPY2,484.7 bn and operating income of JPY184.6 bn, outperforming original forecasts by 8.0% and 19.1% respectively. Despite a slight year-over-year decline in operating income due to US tariffs and foreign exchange impacts, the company revised its full-year FY2026 business forecasts upwards, now projecting net sales of JPY5,000.0 bn and operating income of JPY450.0 bn. This positive revision is driven by strong performance in Asia-Pacific's two-wheel segment and improved profitability in China.

In line with its improved performance, Stanley Electric announced an increase in its annual dividend forecast to JPY100 per share for FY2026, marking a JPY28 increase from the previous fiscal year. The company is also progressing with its JPY80 bn share buyback program, having already acquired JPY63 bn by October and planning to acquire the remaining JPY17 bn by March 2026. Capital investments for H1 FY2026 totaled JPY25.45 bn, with full-year capital expenditure forecasts remaining unchanged at JPY86.00 bn.

Strategic initiatives include expanding motorcycle equipment business in South America, India, and Asia-Pacific, as well as global collaborations to tap non-Japanese manufacturers. The electronics business is benefiting from PC backlight demand and new regulations in Europe, with a new R&D laboratory scheduled to open in February 2026. Additionally, Stanley Electric introduced "ASTUV," a new UV-curable coating technology that aims to reduce CO2 emissions by 50% by 2030.