Kaga Electronics Co (8154) Q3 2026 earnings summary

Executive summary

• Net sales for FY2026/3 Q3 (April–December) rose 12.4% year-over-year to ¥445.4 billion, driven by robust performance in electronic components, information equipment, and the consolidation of Kyoei Sangyo.

• Operating income increased 7.7% year-over-year to ¥19.4 billion, with gross profit margin up to 13.5%.

• Profit attributable to owners of parent surged 91.2% year-over-year to ¥24.3 billion, boosted by a ¥7.6 billion gain on bargain purchase from Kyoei Sangyo.

• Comprehensive income rose 62.9% year-over-year to ¥28.98 billion.

Financial highlights

• Gross profit grew 14.9% year-over-year to ¥59.96 billion.

• EPS doubled year-over-year to ¥485.11, reflecting the gain on bargain purchase and stock split adjustment.

• Q3 (Oct–Dec) net sales were ¥156.5 billion, up 14.1% year-over-year and 3.7% sequentially; quarterly net income was ¥9.3 billion.

• Extraordinary income included a ¥7.6 billion gain on bargain purchase and ¥1.64 billion from sales of investment securities.

• Total assets increased to ¥343.17 billion, and net assets to ¥174.7 billion as of December 31, 2025.

Outlook and guidance

• Full-year FY2026/3 forecasts revised upward: net sales expected at ¥620 billion (+13.2% YoY), operating income at ¥27 billion (+14.4% YoY), and net income at ¥28.5 billion (+66.8% YoY).

• EPS forecast at ¥575.24.

• Year-end dividend raised to ¥70 per share, annual dividend to ¥130 (adjusted for stock split), up ¥20 from prior year.

• Dividend payout ratio forecast at 22.6% (30.8% excluding gain on bargain purchase).