Kaga Electronics Co (8154) Q2 2026 earnings summary

Executive summary

• H1 FY2026 net sales rose 11.5% year-over-year to ¥288,959 million, with growth across all segments and Kyoei Sangyo consolidated from Q2.

• Operating income increased 13.5% to ¥13,049 million and ordinary income rose 19.2% to ¥13,443 million.

• Profit attributable to owners of parent surged 89.3% to ¥15,033 million, including a ¥3,800 million gain on bargain purchase from the Kyoei Sangyo acquisition.

• Growth reflected robust EMS, PC, security software and amusement equipment sales, alongside Kyoei Sangyo consolidation.

Financial highlights

• Gross profit rose 15.9% to ¥39,544 million; gross profit margin increased 0.5pt to 13.7%.

• EPS was ¥293.86, up 94.4% year-over-year and reflecting the two-for-one stock split.

• Exchange rates reduced net sales by ¥4.6 billion and operating income by ¥102 million.

Outlook and guidance

• FY2026 forecasts were raised to net sales of ¥595,000 million, operating income of ¥25,500 million, ordinary income of ¥25,500 million and profit attributable to owners of parent of ¥26,000 million.

• FY2026 dividend forecast remains ¥120 per share, including ordinary and extraordinary dividends; ROE forecast is 15.0%.

• Consolidated dividend payout ratio forecast is 22.9%.