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Investing.com -- Harmonic Drive Systems’ shares jumped after the company struck a more upbeat tone on demand for humanoid robots, signalling stronger order momentum ahead.
The stock closed 8.2% higher in Tokyo following its earnings briefing on Wednesday as management outlined accelerating interest from North American clients and a growing pipeline of potential customers.
The company said it booked roughly 1.3 billion yen in humanoid-related orders in the second quarter and now expects that figure to reach 2.5 billion yen in fiscal year ending March 2026 (FY3/26).
Harmonic also indicated the order size could double in FY3/27, or even triple, supported by improving visibility on prototype production orders from U.S. clients.
“While the previous mid-term target of 10bn yen in humanoid robot sales by FY3/27 still appears aggressive, management’s tone was notably more positive compared to three months ago,” Macquarie analyst Wendy Pan commented in a note.
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The company indicated that the number of potential humanoid customers has climbed to more than 15 following a sharp surge in recent months, particularly in Japan.
Industrial robot trends are also turning more supportive. Management reported that a nearly three-year inventory correction among robot makers has finally ended, with a recovery led by Japanese manufacturers.
Demand for small robots and collaborative models is improving, and while orders from Chinese clients fell year-on-year, the company sees Japanese suppliers regaining momentum in that market.
On the profitability front, early signs of recovery are emerging. Parent-level sales reached 8.2 billion yen in the second quarter, close to the breakeven point.
“With marginal profit over 50%, if monthly parent sales reach over 3bn yen level, e.g. 3.2–3.3bn, parent operating margin (OPM) is likely to hit 10%,” Pan said.
The analyst reiterated her Outperform rating and the 5,000 yen price target on Harmonic Drive Systems.
