F12/26 2Q Results: Overall Solid; Minor Positive

Research evidence excerpt

F12/26 2Q Results: Overall Solid; Minor Positive

Update

July 31, 2026 10:32 AM GMT

Morgan Stanley Asia Limited+MNabtesco (6268) | Japan Lisa Jiang

Equity Analyst

F12/26 2Q Results: Overall Lisa.Jiang1@morganstanley.comMorgan Stanley MUFG Securities Co., Ltd.+ +852 2239-1282

Takeshi Kitaura

Equity AnalystSolid; Minor Positive Takeshi.Kitaura@morganstanleymufg.com +81 3 6836-5427

Takumi Okano

AlphaSignals Earnings Reaction Research Associate

Takumi.Okano@morganstanleymufg.com +81 3 6836-8411

Unchanged Modest upside Modest revision higher

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Key Takeaways

Nabtesco (6268.T, 6268 JT)

2Q results were better than expected. Core businesses broadly outperformed our Factory Automation | Japan

assumptions by a modest margin. Stock Rating Equal-weight

Industry View Attractive

2Q orders for precision reduction gears again recovered steadily. Given order Price target ¥4,800

trends already reported by major robot makers, we doubt this is a major surprise. Shr price, close (Jul 30, 2026) ¥4,337

Mkt cap, curr, basic (bn) ¥508.2

Nabtesco also revised full-year guidance up to above consensus. Avg daily trading value (bn) ¥4.5

The firm announced a share buyback worth up to ¥15.0bn (vs. ¥10.0bn in F12/25),

equivalent to 3.4% of shares in issuance. Our impression is modestly positive.

2Q results: 2Q OP was ¥7.6bn (+48% YoY), exceeding our forecast (¥5.5bn),

consensus (¥6.2bn), and company guidance (¥3.0bn). Relative to our forecast,

results beat across CMP, TRS, and ACB segments.

CMP business: (1) 2Q orders recovered steadily, rising 23% YoY and 11% QoQ, driven

by EV-related demand in China & Korea. (2) Profitability: 2Q operating margin