KOA Corporation (6999) Q2 2026 earnings summary

Executive summary

• Six-month net sales rose 8.6% YoY to ¥34,634 million, supported by recovery in industrial equipment demand and automotive and AI-related sales in Asia.

• Operating profit increased 175.0% to ¥1,305 million; ordinary profit was ¥1,618 million and profit attributable to owners was ¥1,154 million, reversing prior-year losses.

• Phase 2 of the 2027 plan prioritizes ROIC-led profit growth, productivity and portfolio shifts, targeting ¥80bn revenue and ¥7.4bn operating profit.

Financial highlights

• H1 operating margin rose to 3.8% from 1.5%; Q2 revenue was ¥17.79bn, up 13.4% YoY, and operating profit was ¥0.81bn, up 229.9%.

• Gross profit increased to ¥10,195 million from ¥9,082 million YoY.

• Operating cash flow was ¥4,822 million and period-end cash and cash equivalents were ¥25,043 million.

• Total assets were ¥144,076 million, net assets ¥79,599 million and equity ratio 55.2% at September 30, 2025.

• Comprehensive income more than doubled to ¥2,028 million; H1 EPS was ¥31.10 versus a prior-year loss of ¥15.43.

Outlook and guidance

• FY2026 forecast: net sales ¥69,400 million, operating profit ¥2,980 million, profit attributable to owners ¥2,150 million and EPS ¥57.91.

• Forecast operating margin is 4.3%; assumed exchange rate is ¥147 per US dollar.

• 2027 targets are revenue ¥80bn, operating profit ¥7.4bn, operating margin 9.3%, ROIC 4.7% and ROE 6.2%; FX assumptions are ¥145 per US dollar and ¥170 per euro.