Kaga Electronics Co (8154) Q2 2026 earnings summary

Executive summary

• Net sales for H1 FY2026 rose 11.5% year-over-year to ¥288.9 billion, with all business segments contributing to growth and the consolidation of Kyoei Sangyo from Q2.

• Operating profit increased 13.5% year-over-year to ¥13.0 billion, driven by higher gross profit and improved margins.

• Net income attributable to shareholders surged 89.3% year-over-year to ¥15.0 billion, including a gain on bargain purchase from the Kyoei Sangyo acquisition.

• Upward revision of full-year guidance for the second time, reflecting robust H1 performance and acquisition effects.

Financial highlights

• Revenue rose by ¥29.9 billion year-over-year to ¥288.9 billion in Q2; gross profit margin improved to 13.7%.

• Operating profit increased by ¥1.5 billion to ¥13.0 billion; operating margin improved by 0.1pt to 4.5%.

• EPS for the interim period was ¥293.86, up 94.4% year-over-year, reflecting a stock split.

• Net income attributable to shareholders grew by ¥7.0 billion to ¥15.0 billion, aided by negative goodwill and securities gains.

Outlook and guidance

• Full-year revenue forecast raised to ¥595.0 billion (+8.6% YoY); operating profit to ¥25.5 billion (+8.0% YoY); net income to ¥26.0 billion (+52.2% YoY).

• Dividend forecast raised to ¥120 per share, including ordinary and extraordinary dividends.

• ROE projected at 15.0%, targeting sustainable levels above 12%.