Panasonic Holdings Corporation (0QYR) Q3 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

I'll present the consolidated financial results for the third quarter of fiscal 2026 and December 31st, 2025. The summary, sales and operating profit decreased year on year. Sales decreased overall due to lower sales in lifestyle and the deconsolidation of automotive despite higher sales in Kinect Industry Energy. By business, sales of generative AI-related businesses in industry energy increased. In addition to higher sales of process automation and connect, sales decreased in in-vehicle and energy consumer electronics and air conditioners in lifestyle and various other businesses. Adjusted operating profit increased overall due to increased profit in lifestyle, connect, and industry despite deconsolidation of automotive. Operating profit and net profit decreased due to recording of restructuring expenses for ongoing group management reform. Operating cash flows for the nine months decreased year-on-year due to the absence of monetization of IRA tax credit through transferable method in FY March 25 and restructuring expenses. As for the full year forecast, overall sales in adjusted OP remain unchanged by segment. Adjusted OP is revised downward in lifestyle and upward in connect and industry. Overall, adjusted OP forecast for energy remains unchanged, while adjusted OP for in-vehicle is revised downward, and that for industrial consumer is revised upward. The downward revision of the forecast for OP is due to increased restructuring expenses. Sales decreased year-on-year by 4% to 2,063.3 billion yen. However, sales excluding automotive increased by 5% year-on-year. Adjusted OP increased to 159.1 billion yen. Due to the recording of restructuring expenses, operating profit decreased to a loss of 7.2 billion. Net profit also decreased to a loss of 17.1 billion. Result...