Aichi Steel (5482) Q2 2026 earnings summary

Executive summary

• H1 revenue rose 3.3% to ¥149,808 million, operating profit increased 166.4% to ¥8,784 million and profit attributable to owners of the parent rose 233.1% to ¥5,605 million year over year.

• FY26 operating-profit and net-income forecasts increased to ¥15.0bn and ¥10.0bn; the FY24–26 plan targets of ¥15.0bn operating profit and 4% ROE are expected to be achieved early.

Financial highlights

• H1 operating profit was ¥2.7bn above July guidance of ¥6.0bn, supported by factory cost reductions, inventory and cost factors, and overseas subsidiary performance.

• H1 sales volume was 481,000 tonnes, up 11,000 tonnes year over year and 2% from the prior-year period.

• Gross profit increased to ¥23,297 million from ¥16,631 million year over year.

• Basic and diluted EPS were ¥82.98, up from ¥21.31; per-share figures reflect the 4-for-1 split.

Outlook and guidance

• FY26 forecasts are revenue of ¥300.0bn, operating profit of ¥15.0bn and net income of ¥10.0bn; operating profit and net-income guidance rose from ¥14.0bn and ¥9.5bn in July.

• FY26 sales volume is forecast at 1.000m tonnes, up 4% year over year and 5,000 tonnes above July guidance.

• H2 profit is expected below July guidance due to weak stainless demand and higher purchased-input costs from yen depreciation; strong H1 results more than offset this for the full year.

• FY26 dividend is planned at ¥138 per share post-split, comprising a ¥62 ordinary dividend and ¥76 in special dividends.

• FY26 basic EPS is forecast at ¥151.69.