Kunimine Industries (5388) Q2 2026 earnings summary

Executive summary

• Revenue increased 4.7% year-over-year to ¥7,712 million in the first half, driven by strong performance in the Bentonite and Agri segments.

• Operating profit remained flat at ¥461 million due to inventory adjustments in high value-added products.

• Net profit rose 12.3% year-over-year to ¥420 million, aided by the sale of policy-holding shares.

• The business environment showed gradual recovery, supported by wage hikes and capital investment, despite labor shortages and rising logistics costs.

Financial highlights

• Revenue: ¥7,712 million (+4.7% YoY); Operating profit: ¥461 million (flat YoY); Ordinary profit: ¥581 million (flat YoY); Net profit: ¥420 million (+12.3% YoY).

• Gross profit increased to ¥2,141 million from ¥2,041 million year-over-year.

• Comprehensive income dropped to ¥112 million from ¥585 million year-over-year, mainly due to a decline in other comprehensive income.

• EPS for the period was ¥34.56, up from ¥30.53 year-over-year.

• Equity ratio remained high at 83.8%.

Outlook and guidance

• Full-year revenue forecast: ¥16,921 million (+7.7% YoY); Operating profit: ¥1,616 million (+26.2% YoY); Net profit: ¥1,274 million (+18.2% YoY).

• Growth expected in the second half from infrastructure, geothermal, and robust agrochemical demand.

• No revision to previous earnings or dividend forecasts.