Musashi Seimitsu Industry (7220) Q2 2026 earnings summary

Executive summary

• Net sales for FY2025 2nd quarter were ¥168,545 million, down 2.8% year-over-year, while operating profit rose 8.4% to ¥8,498 million and net income increased 45.8% to ¥4,332 million.

• EBITDA improved to ¥17,100 million (10.2% margin), and ordinary profit grew 27.4% to ¥7,964 million.

• The company faced a challenging global environment, with slowing BEV demand, strong HEV growth, and ongoing tariff and geopolitical risks, but maintained strong orders for core products and expanded in China and emerging markets.

• Sales declined mainly in Europe and Asia, but Americas and Japan showed slight increases.

• The Energy Solution segment scaled up hybrid supercapacitor production for AI data centers and restructured its organization to accelerate growth.

Financial highlights

• Operating profit margin improved from 4.5% to 5.0% year-over-year.

• Net income margin rose from 1.7% to 2.6%.

• Gross profit increased to ¥25,675 million from ¥24,842 million year-over-year, with gross margin improvement.

• Free cash flow for the period was ¥5,700 million, with ending cash and deposits at ¥37,583 million.

• Basic earnings per share increased to ¥66.11 from ¥45.37 year-over-year.

Outlook and guidance

• Full-year forecast: net sales ¥330,000 million (down 5.0% YoY), operating profit ¥21,000 million (+6.5%), net income ¥11,000 million (+41.3%), EBITDA ¥40,000 million (+3.6%).

• Dividend forecast maintained at ¥50 per share.

• Capex planned at ¥30,000 million, up significantly from previous year.