ASKUL (2678) Q2 2026 earnings summary

Executive summary

• Net sales for Q2/six months ended November 20, 2025, declined 12.3% year-over-year to ¥208.7 billion, primarily due to a ransomware attack that caused a major system outage and shipment suspension.

• Operating loss was ¥2,995 million, compared to an operating profit of ¥6,028 million in the prior year; loss attributable to owners was ¥6,612 million versus a profit of ¥3,739 million a year earlier.

• Extraordinary losses of ¥5,216 million were recorded as system failure response costs related to the ransomware incident.

• Distribution center shipping capacity has recovered, and service levels have largely returned to normal.

• No interim dividend will be paid; year-end dividend and full-year earnings forecast are undetermined.

Financial highlights

• Gross profit margin improved by 0.2 points year-over-year to 24.6%, but selling, general, and administrative expenses rose to 25.8% of net sales, up 4.0 points.

• Cash and cash equivalents increased by ¥1,009 million from the previous fiscal year-end, reaching ¥49,433 million.

• Net assets decreased by ¥14,572 million to ¥66,682 million, and the capital adequacy ratio fell to 32.0% from 34.2%.

• EBITDA shows a sharp decline in FY5/2026 Q2, with recovery expected in FY5/2027.

• SG&A expenses increased 4.0% year-over-year to ¥53.2 billion, with the ratio to net sales rising to 25.5%.

Outlook and guidance

• Full-year consolidated earnings forecast for FY ending May 20, 2026, has been withdrawn and is currently undetermined due to uncertainties following the ransomware attack.

• Year-end dividend is undetermined, pending future business performance.

• Recovery in earnings is targeted from FY5/2027 onward, with focus on price competitiveness and customer acquisition.