DMG MORI Q2 FY2026: Operating Profit Surges 43%, Lifts Full-Year Guidance

DMG MORI (TSE: 6141) announced on August 4, 2026, its results for the second quarter (interim period) of FY2026. Revenue rose 21.6% year-on-year to ¥276,729 million, operating profit grew 43.0% to ¥9,311 million, and net profit attributable to owners of the parent surged 112.5% to ¥4,378 million, delivering strong top- and bottom-line growth. The gains were fueled by resilient capital expenditure in growth sectors: aerospace, defense, power generation, electronics, and semiconductors. Favorable average exchange rates of ¥153.2 to the dollar and ¥178.5 to the euro provided an additional tailwind.

Orders received jumped 27.6% YoY to ¥306,691 million, with the order backlog swelling to ¥480,088 million, a 27.4% increase from the prior fiscal year-end. In addition to machine tool sales, service and solutions businesses expanded, resulting in record first-half orders across the group. On a quarterly basis, order growth accelerated from +22.8% in Q1 (Jan-Mar) to +31.7% in Q2 (Apr-Jun).

Reflecting the strong first half, management raised its full-year guidance. Revenue is now seen at ¥580,000 million (previously ¥540,000 million, +12.6% YoY), and operating profit at ¥30,000 million (from ¥24,000 million, +58.1% YoY). Investors should note, however, that net profit attributable to owners of the parent was lowered to ¥15,500 million (from ¥21,000 million, -35.5% YoY) because of hybrid capital interest payments and tax-adjustment effects.

DMG MORI’s operations are divided into two segments: Machine Tools and Industrial Services & Solutions. Machine Tools covers the manufacturing and sale of machining centers, multi-tasking machines, CNC lathes, and similar equipment. Industrial Services & Solutions encompasses repair and maintenance, measuring instruments, spindle service solutions (SPS), lifecycle engineering services (LES), and other offerings.

Both segments performed well during the six-month period. Machine Tools’ external revenue expanded roughly 22% YoY to approximately ¥256,000 million, with a meaningful increase in segment profit. Demand for 5-axis and multi-tasking machines from aerospace, defense, and semiconductor manufacturing equipment makers remained strong, while automation needs provided another boost. Industrial Services & Solutions revenue rose about 15% to around ¥52,000 million, supported by ultra-high-resolution laser processing machines for semiconductor-related applications and AI-driven equipment monitoring solutions.

Estimated segment details are shown below:

Both segments recorded higher revenue and profit, with the service segment’s superior margin contributing to a more diversified earnings structure. The accumulating machine tool order backlog also provides solid visibility for second-half sales.

Total assets at the end of the interim period stood at ¥881,440 million (+1.4% vs. the prior fiscal year-end), while total liabilities were ¥528,111 million and total equity ¥353,329 million. The parent company’s equity ratio improved to 40.0% from 39.2%. Hybrid capital (perpetual subordinated bonds) is classified as equity and helps maintain credit strength.

Operating cash flow was a robust +¥28,044 million. Investing cash flow, however, was -¥24,034 million, reflecting aggressive capital expenditure, including the expansion of R&D facilities and construction of the new Deckel Maho headquarters in Germany. On the financing side, a ¥100,000 million fifth series of perpetual subordinated bonds was issued in April to secure liquidity.

Regarding shareholder returns, the company plans an interim dividend of ¥50 and a year-end dividend of ¥55, maintaining an annual payout of ¥105. No share buybacks were conducted during the period, but DMG MORI is working to improve capital efficiency, including the retirement of some treasury shares acquired through 2025.

The upward revision for FY2026 reflects expanding machine tool demand, particularly from semiconductor and aerospace sectors, coupled with growth in the service business. The net profit downgrade results from hybrid capital servicing costs and corporate tax adjustments.

A comparison of the revised forecast is presented below:

Exchange rate assumptions are ¥154.1 per US dollar and ¥182.3 per euro, meaning the weak yen is expected to remain supportive. With a substantial order backlog, revenue is expected to remain solid in the second half.

The earnings report identifies several risk factors:

• Foreign exchange risk: A large share of revenue comes from overseas; a sharp yen appreciation would hurt performance. Full-year projections assume a gradual depreciation, so unexpected forex moves warrant attention.
• Geopolitical risk and economic slowdown: Protracted instability in Ukraine, decelerating growth in China, and escalating trade friction could dampen capital investment.
• Semiconductor cycle volatility: Current demand is strong, but a sudden contraction in orders from semiconductor equipment makers would significantly affect order intake.
• Higher raw material and logistics costs: Rising prices for steel and electronic components add cost pressure.
• Competitive environment: Price competition and R&D races with European and Asian machine tool builders are intensifying.

To mitigate these risks, DMG MORI is optimizing its global production footprint, increasing in-house component manufacturing, and shifting toward higher-value-added products to build earnings resilience.

DMG MORI is advancing its medium-term strategy, “Machining Transformation (MX),” focused on digitalization, automation, and greening. Key initiatives during the first half include:

• Technology and production base expansion: A new “Düsseldorf Experience Center” was opened at Deckel Maho’s headquarters, showcasing state-of-the-art machine tools and automation solutions. The Ultrasonic Center was also expanded to accelerate development of ultrasonic machining technology for semiconductor, optics, and medical applications.
• New product introductions: The “ULTRASONIC 20 3rd Generation,” an ultra-high-precision 5-axis machine for hard-to-machine materials like ceramics, was launched. The “WH-AMR 25 2nd Generation,” an autonomous mobile robot, was released to support factory automation and labor saving. AI-based condition monitoring and predictive maintenance systems, “CELOS Club” and “Condition Agent,” were rolled out to enlarge the service business.
• ESG efforts: DMG MORI was selected for the “A List” in climate change for the second consecutive year and newly recognized on the water security “A List,” reflecting resource-efficient products and process consolidation.

Through these investments and product launches, DMG MORI aims to strengthen its presence in growth markets: aerospace, defense, semiconductors, and medical.