Kurabo Industries (3106) Q2 2026 earnings summary

Executive summary

• Interim net sales fell 3.6% YoY to ¥69.245bn; operating profit declined 7.3% to ¥3.929bn, while profit attributable to owners rose 87.5% to ¥6.421bn, boosted by cross-shareholding sale gains.

• Profits exceeded the August forecast despite lower sales; Advanced Technology, Food and Services, and Real Estate gains offset weakness in Chemical Products and Textile.

Financial highlights

• Gross profit was ¥14.6bn, down 0.7% YoY; gross margin rose to 21.0% from 20.4%, while SG&A increased 2.0% to ¥10.6bn.

• Ordinary profit was ¥4.843bn, down 5.0% YoY; basic EPS was ¥384.12 versus ¥193.12 a year earlier, and comprehensive income rose 91.6% to ¥9.45bn.

• Net sales were 1.1% below the August forecast; operating profit, ordinary profit and interim profit exceeded forecasts by 22.8%, 21.1% and 14.7%, respectively.

Outlook and guidance

• FY3/26 forecasts remain net sales ¥144bn, operating profit ¥8bn and ordinary profit ¥9.5bn; attributable profit guidance rose from ¥9.5bn to ¥10.5bn, up 16.5% YoY.

• Chemical Products forecasts were cut to sales ¥62.5bn and operating profit ¥3.5bn; Advanced Technology forecasts rose to sales ¥23.2bn and operating profit ¥3.4bn.

• FY3/26 segment forecasts: Textile sales ¥43.5bn and operating loss ¥0.7bn; Food and Services sales ¥11bn and operating profit ¥0.7bn; Real Estate sales ¥3.8bn and operating profit ¥2.2bn.

• FY3/28 targets are net sales ¥165bn, operating profit ¥13bn, operating margin 7.9% and ROE 10.0%.

• Annual dividend forecast is ¥282/share, including ¥141 interim and ¥141 year-end; medium-term dividend-on-equity target is 4%.