Hi-Lex (7279) Q2 2026 earnings summary

Executive summary

• Revenue surged 37.3% year-over-year to JPY 209.1 billion, mainly from the consolidation of HI-LEX ACT and growth in the Americas and Europe, aided by yen depreciation.

• Net income soared to JPY 34.9 billion, up 1,859.4% year-over-year, driven by gains on sales of investment securities, negative goodwill, and extraordinary income from new consolidations.

• Operating profit declined 5.0% year-over-year to JPY 2,226 million due to delayed tariff recovery in the Americas, higher labor costs in Mexico, and lost orders in Korea.

• Ordinary profit increased 50.7% year-over-year to JPY 4,882 million.

• Comprehensive income reached JPY 40,357 million, up 839.2% year-over-year.

Financial highlights

• Net sales: JPY 209,107 million (up JPY 56,760 million, +37.3% YoY).

• Operating profit: JPY 2,226 million (down JPY 117 million, -5.0% YoY).

• Ordinary profit: JPY 4,882 million (up JPY 1,642 million, +50.7% YoY).

• Net income: JPY 34,857 million (up JPY 33,078 million, +1,859.4% YoY), mainly from one-time gains.

• Gross profit increased from JPY 17,462 million to JPY 25,715 million year-over-year.

Outlook and guidance

• Full-year net sales forecast at JPY 409,107 million, slightly above previous guidance.

• Full-year operating profit forecast at JPY 5,400 million, in line with prior expectations.

• Net income forecast at JPY 36,850 million, reflecting strong first-half performance.

• Basic earnings per share forecasted at JPY 996.89 for the full year.

• Annual dividend forecast raised to JPY 80.00 per share.