Panasonic Holdings Corporation (0QYR) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you very much. I'd like to first of all present the Q2 financial results for fiscal 2026. This is a summary of results. Sales and profit decreased year-on-year in Q2. Overall sales were down due to lower sales in lifestyle and deconsolidation of automotive, despite higher sales of connect, industry, and energy. Looking at each business, sales of generative AI-related businesses in industry and energy increased, in addition to higher sales of process automation in Connect. However, the sales of the in-vehicle in energy decreased. Overall, Ajacero P decreased due largely to the lower profit in energy, resulting from the significant deterioration in in-vehicle despite higher profit in lifestyle-connected industry. Net profit decreased due to lower AOP and the deterioration in other income and loss. Operating cash flows decreased year-on-year due to the absence of monetization of IRA tax credit through transferable method in fiscal 25. For the full year, the sales forecast is revised downward due to a major revision in vehicle. As I said, OP is expected to continue its year-on-year increase despite the downward revision of 30 billion yen, factoring in the impact of U.S. tariffs, which was not factored into the initial forecast of May 9. By segment, Connect and industry forecasts are revised upwards, while energy forecasts is revised downward. The forecast of the annual dividend is 40 yen per share and remains unchanged from August 29. Next, the details of the Q2 results. Consolidated financial results are shown here. Sales decreased year-on-year by 10% to ¥1,923.8 billion. However, the sales excluding automotive increased by 2% year-on-year. Adjusted OP decreased to 90.4 billion yen and operating profit decreased to 78.1 billion yen. Net profit decreased to 70.9 bi...