KVK Corporation (6484) Q2 2026 earnings summary

Executive summary

• Achieved record-high sales of ¥15,114 million for the interim period, up 6.3% year-over-year, driven by increased orders for core products and strategic product development and overseas expansion.

• Operating profit rose 16.5% to ¥1,378 million, and net income attributable to parent increased 26.1% to ¥1,190 million year-over-year.

• Growth supported by government subsidies related to new factory construction.

• New product launches, including ultra-fine bubble shower heads and kitchen/washbasin devices, contributed to sales growth.

• Strengthened domestic sales channels and expanded presence in Asian markets, including participation in major trade exhibitions.

Financial highlights

• Net sales: ¥15,114 million, up 6.3% year-over-year; Operating profit: ¥1,378 million, up 16.5%; Ordinary profit: ¥1,733 million, up 23.4%; Net income: ¥1,190 million, up 26.1%.

• EPS for the period was ¥148.55, up from ¥118.30 in the prior year.

• Comprehensive income surged to ¥1,513 million, up 121.3% year-over-year.

• Sales growth led by shower-mixer faucets and mixed faucets.

• Three consecutive years of operating profit growth, offsetting higher raw material and procurement costs.

Outlook and guidance

• FY2026 sales target revised to ¥30.5 billion due to weaker-than-expected overseas sales; operating margin target for FY2026 set at 10%.

• Full-year revenue forecast is ¥30,500 million (+2.9% YoY), with operating income of ¥2,700 million (+1.5% YoY) and net income of ¥1,900 million (+10.0% YoY).

• No changes to previously announced guidance despite ongoing challenges in the housing market and raw material costs.

• Focus on strengthening sales and production bases, and sustainability initiatives.