Rinnai stock posts record first-half sales as China weighs on profit
Published on 11/11/2026 at 02:02 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSRecord sales meet profit pressure
- Rinnai's first-half revenue reached a record level as overseas affiliates expanded sales.
- Higher material costs and weaker Chinese earnings reduced operating profit and net income.
- Rinnai kept its full-year forecast unchanged and plans a higher annual dividend.
Rinnai reported record first-half sales for fiscal 2027 on Thursday, November 5, 2026, but profit weakened as higher material costs and a sharp decline in China weighed on earnings. The figures were released in the company's second-quarter financial update, listed on its Investor Relations financial results page.
Sales growth fails to lift profit
Revenue for the six months to September 30, 2026, rose 10.9 percent year on year to 239.92 billion Japanese yen, according to Gyokai Digest. Overseas affiliates drove the increase, lifting overseas sales to 60.8 percent of consolidated revenue.
Operating profit fell 5.2 percent to 21.541 billion Japanese yen, while net income attributable to owners of the parent declined 12.6 percent to 13.908 billion Japanese yen. Higher raw material costs and weaker earnings in China offset stronger sales in several overseas markets. China's operating profit dropped 64.4 percent year on year, while revenue decreased 11.0 percent.
Outlook stays unchanged
Rinnai maintained its fiscal 2027 forecast for revenue of 500.0 billion Japanese yen and operating profit of 50.5 billion Japanese yen. The company expects ordinary profit of 54.1 billion Japanese yen and net income attributable to owners of the parent of 36.3 billion Japanese yen.
The planned annual dividend is 106 Japanese yen per share, up from 100 Japanese yen in the previous fiscal year. Investors will focus on whether stronger demand in Australia, the Americas and Indonesia can offset raw material pressure and the slowdown in China during the second half.
Rinnai's business and rivals
Rinnai makes water heaters, kitchen appliances, air-conditioning equipment and commercial equipment, serving Japan and overseas markets. Its product portfolio is centered on water heating and related home and commercial equipment. Gyokai Digest places Rinnai fifth by revenue among 11 companies in its Metal Products comparison, alongside competitors including Sanwa, TOTO and Bunka Shutter.
Rinnai Corporation at a glance
- Company: Rinnai Corporation
- ISIN: JP3977400005
- Reporting period: First half of fiscal 2027, ended September 30, 2026
- Revenue: 239.92 billion Japanese yen, up 10.9 percent year on year
- Operating profit: 21.541 billion Japanese yen, down 5.2 percent year on year
- Full-year revenue forecast: 500.0 billion Japanese yen
- Full-year operating profit forecast: 50.5 billion Japanese yen
Japan's broader equity market remains a relevant backdrop for domestic and overseas industrial shares. See the Nikkei 225 market coverage.
