Noritz (5943) Q2 2026 earnings summary

Executive summary

• Consolidated net sales rose to ¥99,566 million, up 1.1% year-over-year, with strong domestic growth offsetting overseas declines.

• Operating income increased to ¥1,834 million, up 10.6% year-over-year, exceeding forecasts.

• Net income surged to ¥4,996 million, up 314.9% year-over-year, driven by a ¥4.6 billion gain from the sale of investment securities.

• Comprehensive income for the period was ¥4,959 million, compared to a loss of ¥3,138 million in the prior year.

Financial highlights

• Domestic net sales grew 6.3% year-over-year to ¥69.4 billion, while overseas sales fell 9.2% to ¥30.2 billion.

• Domestic operating income nearly doubled to ¥1.34 billion, while overseas operating income dropped 50.1% to ¥491 million.

• Basic earnings per share for the six months ended June 30, 2026, was ¥109.28, up from ¥26.18 year-over-year.

• Total assets as of June 30, 2026, were ¥232,910 million, with net assets at ¥148,129 million.

• Equity-to-asset ratio improved to 61.3% from 59.0% at the previous year-end.

Outlook and guidance

• Full-year net sales target revised upward to ¥214 billion, with domestic business expected to reach ¥146.5 billion.

• Operating income target maintained at ¥4.5 billion; net income forecast at ¥8.6 billion, reflecting asset sale gains.

• Overseas sales target lowered due to continued weakness in China, but higher targets set for Australia and North America.

• Basic earnings per share for the full year is forecast at ¥188.07.

• Dividend forecast for 2026 is ¥94.00 per share, up from ¥74.00 in 2025.