CompetitionHarmonic Drive faces competition from both alternative reducer types and new entrants in SW reducer, its overall share declining from 35+% today to 6% in the long term.
Financial ImpairmentHDS will recognize impairment at subsidiary Harmonic Precision, which manufactures special bearings; the company expects to record an extraordinary loss.
Profitability ChallengeSW reducers for humanoids are less profitable than for industrial robots, with its long-term operating margin comparable to that of automotive components.