Mani (7730) Q2 2026 earnings summary

Executive summary

• Achieved record-high sales and operating income in FY2026 2Q, driven by strong recovery in China, yen depreciation, and robust Asian demand.

• Resumed and accelerated sales of dental dia-burs in China post-recall, with sales expected to reach 90% of pre-recall levels by August 2026.

• Launched new MANI-branded dental products, expanded R&D for next-generation products, and began transferring direct export accounts to MMG.

• Acquired a 36.67% stake in iRIS EYE GmbH to strengthen European ophthalmic sales.

• Focused product development in Surgical, Eyeless Needle, and Dental segments, with JIZAI and vitreous forceps as primary growth drivers.

Financial highlights

• Net sales for 1H FY2026 reached ¥16,106 million, up 8.7% year-over-year; operating income ¥5,097 million, up 22.2%; net income ¥3,898 million, up 32.6%.

• Ordinary income grew 31.4% to ¥5,619 million; gross profit margin improved to 33.4%.

• Record quarterly highs in sales and operating income, with comprehensive income up 61.9% year-over-year.

• Operating cash flow reached ¥6,324 million; free cash flow positive at ¥5,783 million.

• Earnings per share rose to ¥39.58.

Outlook and guidance

• 1H results outperformed plan, with operating profit at 55.4% of full-year forecast.

• Full-year FY2026 guidance: net sales ¥32,800 million, operating income ¥9,200 million, net income ¥6,450 million; dividend forecast raised to ¥41 per share.

• Second-half outlook cautious due to geopolitical risks, especially in the Middle East.