Stanley Electric H1 Sales Jump 22% as Acquisitions Add Revenue, but Amortization Holds Profit Flat and Net Profit Falls 15%

Acquisitions lift sales, not yet profit

Stanley Electric Co., Ltd. (TSE: 6923) reported consolidated results for the first half of FY3/2027, April 1 to September 30, 2026, on October 26, 2026 under Japanese GAAP. Net sales rose 22.0% to ¥303,093 million. China remained difficult, but sales in the Americas and Asia-Oceania were solid, the exchange rate helped, and the start of operations at Stanley Mobility Electric and the consolidation of Iwasaki Electric, whose shares it acquired in full during the half, added revenue. Quality-related costs booked a year earlier did not recur, but amortization arising from the business combinations weighed, and operating profit slipped 0.3% to ¥18,405 million. Ordinary profit fell 12.5% to ¥19,233 million and net profit attributable to owners of the parent 14.8% to ¥8,657 million, although earnings per share edged up to ¥70.39 from ¥69.37.

Lamps up, new electronics business grows sales

Automotive equipment, which makes vehicle and motorcycle lamps, grew sales 7.6% to ¥230,429 million and operating profit 11.1% to ¥20,891 million: auto lamps faced a tough market in China but sold steadily in the Americas, motorcycle lamps were solid, mainly in Asia, and last year's quality costs fell away. Components, covering LEDs and LCDs, grew sales 14.3% to ¥21,586 million on more automotive LEDs and the weak yen, but higher raw-material prices trimmed profit 1.2% to ¥2,035 million. Electronic applied products, which include backlights, control panels, LED lighting and circuit boards, grew sales 82.7% to ¥102,422 million with Stanley Mobility Electric and Iwasaki Electric, but business-combination amortization cut profit 8.3% to ¥4,308 million. The company notes that Iwasaki Electric's sales and profit tend to be concentrated in the second half, so its first-half contribution was limited, though it is tracking the full-year plan.

Balance sheet and outlook

Total assets rose 15.3% to ¥934,647 million, mainly on higher intangible and investment assets, inventories and receivables, while liabilities grew ¥123,987 million, chiefly short-term borrowings. Net assets were almost unchanged at ¥572,782 million as lower non-controlling interests offset higher retained earnings and valuation gains, so the equity ratio fell to 49.3% from 56.0%. Prior-period figures reflect the finalised accounting for the Stanley Mobility Electric combination. The company left its FY3/2027 forecast unchanged: net sales of ¥622,000 million (+20.0%), operating profit of ¥55,000 million (+28.9%), ordinary profit of ¥58,000 million and net profit of ¥34,000 million. It paid an interim dividend of ¥55 and plans ¥56 at year-end, for an annual ¥111 against ¥104 last year.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.