Kandenko (1942) Q2 2026 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2025, rose 18.8% year-over-year to ¥340.6 billion on a consolidated basis, with significant growth in both general customer and TEPCO Group segments.

• Operating profit increased 49.1% year-over-year to ¥37.9 billion, and profit attributable to owners of the parent surged 53.0% to ¥26.4 billion.

• Comprehensive income rose 133.2% year-over-year to ¥36,477 million.

• Orders received (non-consolidated) grew 7.4% year-over-year to ¥388.5 billion, with backlog reaching ¥677.4 billion.

Financial highlights

• Gross profit margin on completed construction contracts improved to 15.9% from 13.9% year-over-year, with gross profit rising from ¥39,804 million to ¥54,084 million.

• Operating profit margin increased to 11.1% from 8.9% year-over-year.

• Earnings per share for the six months ended September 30, 2025, was ¥129.18, up from ¥84.47 in the prior year period (non-consolidated EPS rose from ¥74.48 to ¥110.36 year-over-year).

• Cash and cash equivalents at end of period were ¥62.8 billion.

• Total assets as of September 30, 2025, were ¥596,287 million, with net assets at ¥405,770 million.

Outlook and guidance

• Full-year consolidated net sales forecast raised to ¥703.0 billion, up 4.6% year-over-year.

• Operating profit forecast for FY2025/FY2026 is ¥63.0 billion, up 8.0% year-over-year.

• Profit attributable to owners of the parent projected at ¥46.0 billion, up 8.5% year-over-year, with EPS forecast at ¥225.05.

• Non-consolidated net sales forecast at ¥607.0 billion, up 4.1% year-over-year.

• Annual dividend forecast for FY2026 is ¥90.00 per share.