Chofu Seisakusho (5946) Q2 2026 earnings summary

Executive summary

• H1 FY2026 revenue was ¥21,129m, nearly flat YoY; operating income rose 637.5% to ¥561m.

• Ordinary income fell 16.6% to ¥1,248m, weighed by an ¥805m limited partnership investment loss.

• Net income rose 645.3% to ¥991m, while comprehensive income reached ¥2,833m, reversing the prior-year loss.

• Price revisions and production rationalization supported operating profit; strong high-efficiency water heaters and homebuilder air-conditioning equipment partly offset weaker engineering sales.

Financial highlights

• Revenue was ¥21,129m, flat YoY and 4.0% below plan; operating income was ¥561m, up 637.5% and 12.3% above plan.

• Ordinary income was ¥1,248m, down 16.6% YoY and 34.3% below plan; net income was ¥991m, up 645.3% and 23.7% below plan.

• Gross profit increased to ¥4,837m from ¥4,374m YoY; operating margin improved amid lower SG&A expenses.

• Basic EPS rose to ¥29.16 from ¥3.91 YoY.

• Capital expenditures were ¥630m versus ¥1,080m a year earlier; depreciation was ¥768m versus ¥842m.

Outlook and guidance

• FY2026 revenue guidance is ¥48,000m (+3.2% YoY), operating income ¥2,400m (+40.2%), ordinary income ¥4,600m (+0.3%), and net income ¥3,200m (+47.1%).

• Full-year segment revenue plans: water heaters ¥23,200m (+2.8%), air conditioning ¥17,400m (+5.7%), systems ¥1,100m (+3.0%), solar and other ¥4,200m (+11.4%), engineering ¥2,100m (-20.2%).

• Forecast basic EPS is ¥94.11.

• Planned annual dividend is ¥46 per share, including a ¥23 interim dividend; planned capital expenditures are ¥2,000m and depreciation ¥1,500m.

• Forecasts are based on current information and assumptions; actual results may differ due to changing conditions and other factors.