Nippon Electric Glass (5214) Q2 2026 earnings summary

Executive summary

• Net sales rose 1.7% year-over-year to ¥156.4 billion for the six months ended June 30, 2026, driven by strong demand in the displays business.

• Operating profit declined 31.8% year-over-year to ¥11.4 billion due to increased expenses in the displays business and startup costs in medical care.

• Ordinary profit increased 14.7% year-over-year to ¥16.3 billion, supported by foreign exchange gains.

• Profit attributable to owners of parent fell 36.4% year-over-year to ¥6.4 billion, impacted by business restructuring expenses and extraordinary losses.

Financial highlights

• Gross profit decreased to ¥35.7 billion from ¥39.0 billion year-over-year.

• Comprehensive income improved to ¥20.1 billion from a loss of ¥6.4 billion in the prior year period, mainly due to favorable foreign currency translation adjustments.

• Basic earnings per share dropped to ¥86.34 from ¥127.51 year-over-year.

• Net cash provided by operating activities increased to ¥24.1 billion, while cash used in investing and financing activities rose, resulting in a net decrease in cash and cash equivalents.

Outlook and guidance

• Full-year 2026 net sales forecast revised down to ¥300.0 billion (down 3.7% year-over-year), with operating profit expected at ¥20.0 billion (down 41.4%), ordinary profit at ¥25.0 billion (down 33.8%), and profit attributable to owners of parent at ¥15.0 billion (down 49.4%).

• Earnings per share for the year forecast at ¥201.90, reflecting share repurchases.

• Demand in the displays business is expected to decline slightly in the second half, while electronics sales are projected to expand, and composites business sales are expected to fall due to restructuring.

• Raw material prices and yen depreciation are anticipated to increase costs, with ongoing efforts to mitigate impacts through price revisions and productivity improvements.