Hioki EE (6866) Q2 2026 earnings summary

Executive summary

• Achieved record-high first half net sales of ¥24.1 billion, up 23.5% year-over-year, driven by strong domestic component and Chinese battery sales, robust overseas demand, and favorable yen depreciation.

• Growth was led by demand in data centers, EV/ESS batteries, and robust order backlogs, especially in automatic test equipment.

• Strategic initiatives included new product launches for advanced measurement, production efficiency improvements, and expanded technical and service centers.

• ESG efforts advanced with new products using recycled plastics, third-party verified carbon neutrality, and international recognition for supply chain engagement.

• Full-year outlook remains stable, with continued high demand expected for batteries and data center expansion.

Financial highlights

• First half 2026 net sales rose 23.5% year-over-year to ¥24.1 billion; operating profit up 53.5% to ¥5.05 billion; net profit attributable to owners up 73.7% to ¥3.99 billion.

• EPS up 74.9% to ¥296.82; gross profit margin improved to 52.3% in Q2 2026.

• Orders received surged 38.5% year-over-year to ¥27.25 billion.

• Overseas net sales were ¥15,752 million (up 28.0%), representing 65.3% of total sales.

• Cash and cash equivalents at period-end were ¥17,220 million, up ¥497 million from the previous year-end.

Outlook and guidance

• Full-year 2026 net sales forecast revised up to ¥47.7 billion (+17.7% YoY); operating profit projected at ¥9.84 billion (+38.5% YoY); EPS forecast raised to ¥560.80 (+39.1% YoY); dividend per share to increase to ¥240.

• Order backlog remains high, but long delivery lead times for automatic test equipment may limit second-half sales contribution.

• Management highlights risks from global economic uncertainty, energy prices, inflation, and logistics disruptions, but expects continued growth in renewable energy, data centers, and battery markets.

• Risks include persistent high material prices and procurement delays.

• Ongoing monitoring of order status and readiness to revise forecasts if conditions change.