DKK Co (6706) Q2 2026 earnings summary

Executive summary

• Net sales rose 13.8% year-over-year in 1H FY3/26 to ¥14,914 million, with both sales and profits increasing and operating profit of ¥11 million versus a ¥529 million loss a year earlier.

• Net profit attributable to owners was ¥143 million, reversing a ¥454 million loss in the prior year.

• Orders received increased 10.8% year-over-year to ¥18,645 million, driven by recovery in telecommunication and radio frequency segments.

• Telecommunication segment saw strong growth, especially in Mobile Communications and Defense.

• Medium-term business plan "DKK-Plan2028" is progressing, with new initiatives and structural reforms underway.

Financial highlights

• 1H FY3/26 net sales: ¥14,914 million (+13.8% YoY); operating income: ¥11 million (from -¥529 million YoY); net income: ¥143 million (from -¥454 million YoY).

• Gross profit increased 32.7% YoY to ¥3,087 million; operating margin improved from -4.0% to 0.1%.

• Full-year FY3/26 forecast: net sales ¥33,000 million (+1.3% YoY), operating income ¥700 million (-25.2% YoY), net income ¥600 million (-22.8% YoY), ordinary profit ¥800 million (-21.9% YoY).

• Net income per share was ¥16.07, compared to a loss of ¥48.01 per share a year earlier.

• Equity ratio improved to 69.8% from 68.8% at the previous fiscal year-end.

Outlook and guidance

• FY3/26 full-year forecasts remain unchanged, with steady order growth in Telecommunication and a decline in Radio Frequency expected.

• Sales and profits are expected to be concentrated in 4Q.

• Dividend forecast remains unchanged at ¥80 per share for the fiscal year ending March 31, 2026.