Nippon Gear (6356) Q2 2026 earnings summary

Executive summary

• Domestic economy showed moderate recovery due to improved employment, income, and inbound demand, while global outlook remained uncertain amid geopolitical risks and resource price hikes.

• Orders increased 21.6% year-over-year to ¥6,031 million, but sales declined 0.7% to ¥4,212 million; order backlog rose 39.5% from prior year-end.

• Operating profit fell 11.1% year-over-year to ¥791 million, ordinary profit dropped 11.1% to ¥817 million, and net profit decreased 11.2% to ¥555 million.

Financial highlights

• Sales: ¥4,212 million (down 0.7% year-over-year).

• Operating profit: ¥791 million (down 11.1% year-over-year).

• Ordinary profit: ¥817 million (down 11.1% year-over-year).

• Net profit: ¥555 million (down 11.2% year-over-year).

• EPS: ¥39.00 (down from ¥43.91 year-over-year).

Outlook and guidance

• Full-year sales forecast at ¥9,300 million (down 2.7% year-over-year), operating profit ¥1,480 million (down 4.5%), ordinary profit ¥2,060 million (down 2.2%), net profit ¥1,480 million (down 2.9%).

• No change to previously announced full-year guidance due to difficulty in reasonably estimating profits.