Nihon Kohden Corporation (6849) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY2025 rose 5.2% year-over-year to ¥108.1 billion, with overseas sales up 12.9% and domestic sales up 1.0%.

• Operating income increased 31.8% year-over-year, driven by higher sales, improved gross margin, and the consolidation of Ad-Tech.

• Income attributable to owners of parent surged 876.7% year-over-year to ¥4.52 billion, mainly due to higher sales, improved gross margins, and lower foreign exchange losses.

• The company is executing its BEACON 2030 strategy, focusing on global expansion, operational excellence, and solution-based business models.

Financial highlights

• Gross profit margin improved from 50.5% to 52.5% year-over-year, supported by higher selling prices and cost reductions.

• Net income per share (basic) was ¥27.74, reflecting a stock split effective July 1, 2024.

• SG&A expenses rose to ¥50.0 billion, with a ratio of 45.5%.

• Free cash flow for the first half was ¥9.74 billion, up from ¥4.52 billion year-over-year.

• Cash and cash equivalents increased by ¥6,474 million to ¥49,535 million at period end.

Outlook and guidance

• FY2025 net sales forecast maintained at ¥240.0 billion, up 6.5% year-over-year.

• Operating income projected at ¥24.0 billion, up 15.9% year-over-year, with a 10.0% margin.

• Overseas sales forecast raised to ¥90.6 billion (+13.0%), while domestic sales forecast slightly reduced to ¥149.4 billion.

• Income attributable to owners of parent revised down to ¥12.5 billion due to extraordinary losses from employee career support programs.

• Extraordinary losses of approximately ¥2.4 billion expected in FY2025 due to career change support program.