DAIKO XTECH (8023) Q2 2026 earnings summary

Executive summary

• H1 FY2026 revenue fell 1.7% YoY to ¥20,472m as prior-year large PC sales rolled off and hardware and supply sales declined; software services and recurring business grew.

• Orders rose 0.7% to ¥21,477m and backlog increased 1.0% to ¥10,689m, supported by modernization projects and recurring business.

• Gross profit increased 2.6% to ¥5,050m, while operating profit fell 20.6% to ¥674m and net income declined 22.5% to ¥441m.

• CANVAS TWO focuses on business transformation and value-added solutions; BULiT Application Co. was acquired to strengthen solution offerings.

Financial highlights

• H1 revenue was ¥20,472m, down ¥355m YoY; orders were ¥21,477m, up ¥148m, and backlog was ¥10,689m, up ¥105m.

• Gross profit increased ¥127m to ¥5,050m; gross margin expanded 1.0 percentage point to 24.7%.

• SG&A rose ¥303m to ¥4,376m; operating profit decreased ¥175m to ¥674m, with operating margin down 0.8 point to 3.3%.

• Ordinary profit declined ¥184m to ¥710m; net income attributable to owners decreased ¥128m to ¥441m.

• Comprehensive income rose 54.5% to ¥821m; EPS was ¥34.90 versus ¥43.71 in the prior year.

Outlook and guidance

• FY2026 guidance remains unchanged: revenue ¥43,000m, operating profit ¥2,450m, and net income ¥1,650m.

• H1 progress toward targets was 49.7% for orders, 47.6% for revenue, and 44.3% for gross profit; management expects to meet plans, citing firm orders, backlog, and recurring business.

• CANVAS TWO FY2028 targets are revenue ¥45bn, operating margin 6.7%, net income ¥2.05bn, and ROE of at least 13%.