Nagano Keiki (7715) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 FY03/2026 were ¥32,401 million, down 9.1% year-over-year, reflecting declines in domestic and U.S. sales due to semiconductor industry inventory adjustments and foreign exchange impacts.

• Operating profit was ¥3,251 million, down 18.6% year-over-year, and profit attributable to owners was ¥2,242 million, a 24.3% decrease, impacted by lower dividend income, equity method profit, and foreign exchange losses.

• Interim dividend increased to ¥26 per share, with annual dividend forecast revised to ¥50.

• Progress is in line with the consolidated second-quarter earnings forecast.

• Production capacity was enhanced with the expansion of the Maruko Electronic Instrument Plant, consolidating pressure sensor element manufacturing and improving efficiency.

Financial highlights

• Gross profit for the period was ¥10,169 million, with a gross margin of 31.4%, down from 32.3% in the prior year.

• Operating margin for Q2 FY03/2026 was 10.0%, down from 11.2% in the prior year.

• Comprehensive income was ¥3,114 million, down 15.0% year-over-year.

• Total assets increased to ¥75,666 million, with an equity-to-asset ratio of 61.2%.

• Cash and cash equivalents increased by ¥1,797 million to ¥11,498 million as of September 30, 2025.

Outlook and guidance

• FY03/2026 full-year forecast: net sales ¥67,100 million (down 3.5% YoY), operating profit ¥6,800 million (down 11.1% YoY), profit attributable to owners ¥5,100 million (down 15.8% YoY).

• Annual dividend forecast raised to ¥50 per share.

• The company maintains its full-year forecast despite ongoing uncertainty and a delayed recovery in the semiconductor market.