Daiwabo Holdings (3107) Q2 2026 earnings summary

Executive summary

• Net sales for 2Q FY2026 reached ¥656.8 billion, up 27.0% year-over-year, driven by strong IT infrastructure demand and PC replacement cycles.

• Operating income rose 65.9% year-over-year to ¥22.4 billion, with net income attributable to owners at ¥15.7 billion, up 66.1%.

• Comprehensive income nearly doubled year-over-year, reaching ¥16,485 million, an 88.9% increase.

• Upward revisions to full-year forecasts reflect continued robust demand, especially from the GIGA School Program and Windows 10 replacement cycle.

Financial highlights

• Net sales for 2Q FY2026: ¥656.8 billion (+27.0% YoY); operating income: ¥22.4 billion (+65.9% YoY); ordinary income: ¥22.6 billion (+63.4% YoY); net income attributable to owners: ¥15.7 billion (+66.1% YoY).

• Gross profit margin improved to 7.2% from 6.7% YoY; operating profit margin rose to 3.4%.

• Cash flows from operating activities increased 33.7% YoY to ¥6.5 billion; cash and cash equivalents at period end: ¥48.8 billion.

• Equity capital ratio improved to 35.5% as of September 30, 2025.

• Basic earnings per share for the period were ¥176.04, up from ¥102.52 in the prior year.

Outlook and guidance

• Full-year net sales forecast revised upward to ¥1,337 billion (+17.6% YoY); operating income forecast to ¥45 billion (+28.9% YoY); profit attributable to owners forecast at ¥30.8 billion (+24.4% YoY).

• Basic earnings per share for the full year projected at ¥346.04.

• Dividend forecast for FY2026 is ¥100 per share, with ¥50 at year-end.

• Second half outlook remains positive, with continued strong IT demand and GIGA School-related sales expected.

• Operating income margin expected to remain stable around 3.3–3.4%.