Nihon Dengi (1723) Q2 2026 earnings summary

Executive summary

• Net sales and profits reached record highs for the first six months, with net sales rising 24.6% year-over-year to ¥18,668 million, operating income up 78.6% to ¥4,140 million, and net profit up 80.3% to ¥2,968 million, driven by growth in both air conditioning instrumentation/Building Automation and industrial systems/Factory Automation segments, supported by a robust business environment and effective cost management.

• Comprehensive income increased 130.0% year-over-year to ¥4,009 million for the period.

Financial highlights

• Gross profit for the six months ended September 30, 2025, was ¥8,440 million, up from ¥6,022 million a year earlier.

• Basic earnings per share for the period was ¥186.35, compared to ¥103.43 in the prior year, reflecting a stock split.

• Equity increased due to profit accumulation, and total assets rose to ¥52,886 million at March 31, 2025, before slightly declining to ¥51,758 million at September 30, 2025.

• Equity-to-asset ratio improved to 81.6% as of September 30, 2025, from 74.7% at March 31, 2025.

Outlook and guidance

• Full-year forecasts for FY2026 were revised upward, with net sales expected to reach ¥46,000 million (+6.8% YoY), operating income ¥10,500 million (+15.1% YoY), ordinary profit ¥10,700 million (+15.0% YoY), profit attributable to owners of parent ¥7,300 million (+13.8% YoY), and basic EPS ¥458.22.

• ROE forecast revised to 17.4% for FY2026.

• Dividend forecast for FY2026 is ¥132.00 per share, up ¥10.00 from the previous year, with a year-end dividend of ¥71 per share post-stock split.