Denso Reports Modest Revenue Growth Amid Profit Decline
Denso Corporation reported a 3.3% revenue growth to ¥3,590.5 billion for the six months ending September 30, 2025, but faced a 15.8% decline in operating profit to ¥211.4 billion and a 31.2% drop in profit attributable to owners to ¥131.4 billion. Revenue growth was driven by higher vehicle sales in North America and Asia, while operating profit was impacted by quality provisions and R&D expenses. Denso revised its full-year forecast, expecting a slight revenue growth of 1.1% and a 25.4% increase in operating profit.
Denso Corporation, a leading global automotive components manufacturer, operates primarily in the automotive sector, focusing on developing advanced technologies and systems to enhance vehicle performance and safety.
In its latest earnings report for the six months ending September 30, 2025, Denso reported a modest revenue increase of 3.3% year-over-year, reaching ¥3,590.5 billion. However, the company faced a decline in operating profit by 15.8% to ¥211.4 billion, and profit attributable to owners of the parent company decreased by 31.2% to ¥131.4 billion.
Key financial highlights include a revenue increase driven by higher vehicle sales in North America and Asia, despite the adverse impact of a strong yen. Operating profit was affected by quality-related provisions and increased R&D expenses. Regionally, North America saw a significant 5.3% revenue increase, while Japan experienced a notable decline in operating profit due to foreign exchange impacts and prior one-time gains.
Looking ahead, Denso’s management has revised its full-year forecast, expecting a slight revenue growth of 1.1% to ¥7,240.0 billion and a substantial increase in operating profit by 25.4% to ¥651.0 billion. The company remains focused on cost reduction and strategic investments to navigate the challenging economic landscape.
