Fuji Seal International (7864) Q2 2026 earnings summary

Executive summary

• Consolidated sales rose 3.9% year-over-year, led by growth in the Americas and Europe, with operating profit up 27.1% and net profit up 60.5%.

• Comprehensive income declined 57.9% year-over-year to ¥6,003 million, mainly due to a significant negative foreign currency translation adjustment.

• Operating profit progress rate reached 60.2% at Q2, with expectations for convergence in the second half due to seasonal trends.

Financial highlights

• Net sales: ¥109,328 million (+3.9% YoY); operating profit: ¥11,671 million (+27.1% YoY); net profit: ¥9,147 million (+60.5% YoY); ordinary profit: ¥12,004 million (+39.9% YoY).

• EPS increased to ¥171.61 from ¥105.01 year-over-year.

• Gross profit margin improved, with gross profit at ¥25,010 million versus ¥21,747 million a year earlier.

• Cash and cash equivalents at period-end increased by ¥6,887 million to ¥35,939 million.

• Operating and free cash flow reached record highs for Q2.

Outlook and guidance

• Full-year forecast for FY2026: net sales ¥216,000 million (+1.7% YoY), operating profit ¥19,400 million (+3.0%), net profit ¥17,300 million (+41.8%).

• Dividend payout ratio targeted at 30.2% (excluding one-time effects), with a semi-annual dividend of ¥35 per share and FY2026 forecast of ¥71 per share.

• Operating profit is expected to normalize in the second half, reflecting typical seasonal performance.