Okamoto Industries (5122) Q2 2026 earnings summary

Executive summary

• Revenue for the first half of FY2025 was ¥52.8 billion, down 2.9% year-over-year, with operating profit at ¥2.5 billion, down 49.1% year-over-year.

• Net income reached ¥1.9 billion, a 34.8% decrease year-over-year, but exceeded forecasts by 76.7%.

• The film business remained solid, but automotive materials and condoms saw sales declines domestically and internationally.

• Profit decline was driven by yen appreciation, higher flame retardant costs, and a slowdown in China.

Financial highlights

• Revenue: ¥52.8 billion (−2.9% YoY); Operating profit: ¥2.5 billion (−49.1% YoY); Ordinary profit: ¥3.3 billion (−32.5% YoY); Net income: ¥1.9 billion (−34.8% YoY).

• Gross profit fell 18.3% year-over-year to ¥10.1 billion.

• Net income per share was ¥112.83, compared to ¥170.70 in the prior year.

• Comprehensive income fell to ¥3,221 million from ¥6,620 million year-over-year.

• Non-operating income rose due to higher dividend income and lower foreign exchange losses.

Outlook and guidance

• Full-year forecast remains unchanged: net sales ¥109.0 billion, operating income ¥5.7 billion, net income ¥4.3 billion.

• Operating income projected at ¥5.7 billion, ordinary income at ¥7.0 billion, and profit attributable to owners at ¥4.3 billion, up 35.6% year-over-year.

• Dividend forecast maintained at ¥120 per share for the fiscal year.

• Guidance reflects persistent high raw material costs, Chinese economic slowdown, U.S. tariff impacts, and FX uncertainty.