NVE (NVK) Q2 2027 Earnings Report

The call was generally optimistic. First-half revenue grew 36%, distributor sales increased sharply, profitability metrics remained strong, operating cash flow improved, and management highlighted positive momentum in robotics, automation, power conversion, and new products. However, the second quarter included an 8% revenue decline, a 95% decrease in defense product sales, lower net income and EPS, and higher operating expenses. Management characterized the main sales disruptions as temporary and expected second-half revenue to be consistent with the first half.

Management expects medical device and defense sales to recover in the current quarter, revenues in the second half of the fiscal year to be consistent with the first half, and the effective tax rate to be between 14% and 16% for at least the remainder of the fiscal year; Peter Eames said the company expects to return to growth in the next quarter, expects continued growth in power conversion, expects growth long term from wafer level chip scale products, and expects revenue to increasingly come from new customers. NVE said typical product ASP is perhaps $1 to $2 per sensor, with the potential for several NVE sensors per robot and “certainly in the tens of centers” per humanoid robot, while its capacity is well within producing millions of sensors and tens of millions of sensors and can easily scale well beyond that in the short term; the company also declared another $1.00 per share quarterly dividend to be paid at the end of November.