Canare Electric (5819) Q2 2026 earnings summary

Executive summary

• Revenue increased 2.9% year-over-year to ¥6,638 million for the first half of FY2026, driven by overseas growth despite domestic softness.

• Operating profit declined 0.4% year-over-year to ¥889 million, and net profit attributable to shareholders fell 1.8% to ¥635 million, reflecting higher material costs and increased investment in sales and R&D.

• Overseas sales, especially in the US, Korea, and Southeast Asia, showed strong growth, offsetting declines in Japan and China.

Financial highlights

• Gross profit margin declined due to rising material costs, despite higher sales.

• Comprehensive income rose 54.5% year-over-year to ¥787 million, mainly from foreign currency translation gains.

• EPS for the half-year was ¥92.77, down from ¥94.78 a year earlier.

• Total assets increased to ¥21,279 million, and equity ratio improved to 92.2%.

Outlook and guidance

• Full-year revenue forecast remains unchanged at ¥13,200 million, up 0.6% year-over-year.

• Operating profit is expected to decline 6.4% to ¥1,480 million, and net profit to decrease 1.7% to ¥1,180 million.

• Uncertainty remains regarding the impact of Middle East geopolitical risks.