Nishikawa Rubber (5161) Q2 2026 earnings summary

Executive summary

• Revenue and operating income declined year-over-year due to yen appreciation and changes in vehicle orders, but both exceeded initial forecasts.

• Ordinary income increased 26.6% year-over-year as foreign exchange losses turned to gains.

• Net income attributable to parent surged 105.1% to ¥4,289 million, aided by a ¥1,139 million tax refund from resolved litigation.

Financial highlights

• Revenue: ¥57,349 million, down 6.3% year-over-year but up 4.3% from initial forecast.

• Operating income: ¥3,979 million, down 3.0% year-over-year but up 32.7% from forecast.

• Ordinary income: ¥4,736 million, up 26.6% year-over-year.

• Net income attributable to parent: ¥4,289 million, up 105.1% year-over-year.

• EPS for the half-year was ¥111.85, up from ¥54.17 year-over-year (adjusted for stock split).

Outlook and guidance

• Full-year revenue forecast revised up to ¥112,000 million (+7.2% YoY), operating income to ¥6,700 million (+8.5%), and net income to ¥6,000 million (+51.6%), reflecting strong first-half results but factoring in semiconductor supply risks.

• Dividend forecast for FY2026 is ¥181 per share (post-split basis), with DOE targeted at 8%.

• Management continues to focus on productivity, new technology, and global group efficiency.