Macnica Holdings (3132) Q2 2026 earnings summary

Executive summary

• Net sales for FY2025 1H reached ¥575.4 billion, up 10.9% year-over-year, driven by strong demand in generative AI, IT security, and contributions from both the Semiconductor and Cybersecurity businesses.

• Operating income declined 21.8% year-over-year to ¥17.5 billion, mainly due to foreign exchange impacts, margin pressure in the Semiconductor segment, and increased SG&A expenses following a recent consolidation.

• Net income attributable to owners of parent fell 27.7% year-over-year to ¥11 billion, reflecting lower margins and higher costs.

• The full-year forecast remains unchanged, with expectations of gradual recovery in industrial equipment and electronics, and continued growth in cybersecurity.

Financial highlights

• Semiconductor/ICs and Electronic Devices business net sales rose 11.1% year-over-year to ¥494.8 billion, driven by AI-related demand and overseas channel expansion, but operating income dropped 40.3% to ¥9.7 billion due to margin pressure.

• Cybersecurity and Other IT Solutions business net sales increased 9.9% year-over-year to ¥80.7 billion, with operating income up 28.3% to ¥7.8 billion, driven by strong demand for endpoint and cloud security solutions.

• CPS Solutions business net sales were ¥3.7 billion, up 1% year-over-year.

• Gross profit was ¥59.9 billion, nearly flat year-over-year, as higher sales were offset by increased cost of sales.

• Dividend per share for FY2025 is projected at ¥70, with a payout ratio of 46%.

Outlook and guidance

• Full-year forecast for FY ending March 31, 2026 remains unchanged: net sales of ¥1,050 billion (+1.5%), operating income of ¥42 billion (+5.9%), and net income attributable to owners of parent of ¥27 billion (+6.8%).

• Industrial equipment and electronics markets expected to recover gradually in 2H FY2025.

• Cybersecurity business anticipated to maintain strong growth, especially in security and application-related areas.

• CPS Solutions business forecasted to grow in 2H, focusing on smart city and mobility initiatives.

• Full-year guidance for FY2025 remains unchanged from the May 7, 2025 announcement.