Hi-Lex (7279) Q3 2026 earnings summary

Executive summary

• Net sales rose 40.8% year-over-year to JPY 320.6 billion, driven by ACT consolidation and positive foreign exchange effects.

• Operating profit increased 23.1% year-over-year to JPY 3.9 billion, with ACT contributing and improved profitability in the U.S., Europe, and Japan.

• Ordinary profit grew 36.9% year-over-year to JPY 8.0 billion.

• Net income surged 1,100.6% year-over-year to JPY 40.8 billion, mainly due to gains from investment securities sales and a bargain purchase.

• Comprehensive income reached JPY 47.7 billion, up 613.2% year-over-year.

Financial highlights

• Gross profit for the period was JPY 38.9 billion, up from JPY 25.8 billion year-over-year.

• Basic earnings per share for the nine months was JPY 1,105.08, compared to JPY 90.67 in the prior year.

• Total assets increased to JPY 363.5 billion as of July 31, 2026.

• Net assets rose to JPY 236.1 billion.

• Equity-to-asset ratio was 59.5% as of July 31, 2026.

Outlook and guidance

• Full-year net sales forecast is JPY 401.0 billion, a 31.9% increase year-over-year.

• Operating profit is projected at JPY 5.4 billion, up 59.2% year-over-year.

• Ongoing negotiations and measures to mitigate tariff impacts and rising raw material costs, especially in the Americas and due to the Middle East situation.

• Continued focus on profitability enhancement and cost management across regions.

• Full-year basic earnings per share forecast is JPY 996.89.