Hosokawa Micron (6277) Q2 2026 earnings summary

Executive summary

• Achieved the second-highest H1 sales on record, with net sales rising 3.7% year-over-year to ¥39,910 million, but operating profit dropped 49.7% to ¥1,796 million and net income fell 54.9% to ¥1,212 million, impacted by higher SG&A and extraordinary losses.

• Profitability was affected by weak performance at major European subsidiaries, increased costs, and extraordinary losses from business structure improvement expenses overseas.

• Orders received and backlog both declined slightly, reflecting delayed investment decisions amid geopolitical tensions and rising energy prices.

Financial highlights

• Consolidated bookings: ¥40.6 billion (-0.9% YoY); net sales: ¥39.9 billion (+3.7% YoY).

• Operating profit: ¥1.8 billion (-49.7% YoY); ordinary profit: ¥2.3 billion (-42.4% YoY); net income: ¥1.2 billion (-54.9% YoY).

• Gross margin declined to 33.2% (down 1.7pp YoY) due to higher labor, raw material, and energy costs.

• SG&A ratio increased to 28.7% (+3.0pp YoY), mainly from wage hikes and one-off costs.

• Comprehensive income increased 18.0% YoY to ¥4,369 million, driven by foreign currency translation adjustments.

Outlook and guidance

• Full-year forecast remains unchanged: net sales ¥78.5 billion (+0.6% YoY), operating profit ¥7.0 billion (-0.7% YoY), net income ¥5.2 billion (+14.9% YoY).

• Earnings per share forecasted at ¥355.29 for the full year.

• Positive outlook driven by high-margin maintenance projects and focus market bookings; risks include Middle East tensions.