• Clear rebound QoQ – Q1-2 FY3/26 results showed signs of stabilisation, which was a positive development. Restar showed clear earnings recovery in Q2 FY3/26, with OPM improving to 2.3% from 1.2% in Q1 FY3/26, signalling that earnings momentum is returning after a weak start to the year. Adjusting for yen appreciation, underlying sales rose 3.5% YoY. However, operating profit declined due to a softer sales mix at the Devices business unit and weakness in the power supply-demand adjustment market residing in the Eco-solutions sub-segment. The company has maintained FY3/26 guidance, which implies a material jump in profitability HoH. We believe this will depend heavily on whether demand from the industrial equipment sector returns, with current indications that order visibility is improving.
