Honyaku Center (2483) Q2 2026 earnings summary

Executive summary

• Net sales for the six-month period ended September 30, 2025, were ¥5,345 million, down 2.2% year-over-year, mainly due to weaker performance in the core Translation Business despite record-high results in the Interpretation Business.

• Operating income decreased 1.6% year-over-year to ¥346 million, while ordinary income rose 3.4% to ¥367 million, aided by higher equity-method profits and lower foreign exchange losses.

• Net income attributable to shareholders increased 3.0% year-over-year to ¥239 million.

• The business environment is rapidly evolving with the adoption of AI and machine translation, prompting a focus on data-driven sales and service innovation.

Financial highlights

• Gross profit for the period was ¥2,535 million, with a gross margin of 47.4%.

• Net assets stood at ¥6,759 million, with a shareholders' equity ratio of 79.2%.

• Cash and cash equivalents at period-end were ¥4,398 million, down ¥183 million from the previous fiscal year.

• Net cash provided by operating activities was ¥742 million, while investing and financing activities used ¥673 million and ¥251 million, respectively.

Outlook and guidance

• Full-year forecast for FY ending March 31, 2026: net sales of ¥11,400 million (+1.6% YoY), operating income of ¥900 million (+1.0%), ordinary income of ¥920 million (+1.5%), and net income of ¥630 million (−12.9%).

• No changes to previously disclosed forecasts.