OLBA HEALTHCARE (2689) Q2 2026 earnings summary

Executive summary

• Sales and gross profit reached record highs in Q2 FY6/26, with net sales for the six months ended December 31, 2025, increasing by 3.0% YoY to ¥62,444 million, but net income declined due to one-time gains in the prior year and increased SG&A expenses.

• Operating profit declined 16.6% YoY to ¥673 million, and profit attributable to owners of parent dropped 30.5% YoY to ¥450 million.

• Core medical equipment business saw steady sales but faced margin pressure from tough price negotiations and higher costs.

• SPD and nursing care products businesses experienced steady growth, with notable gains in the Shikoku area and increased SPD contracts.

• Comprehensive income decreased 39.9% YoY to ¥386 million.

Financial highlights

• Q2 FY6/26 sales: ¥62.4 billion (+3.0% YoY); gross profit: ¥6.94 billion (+1.8% YoY); operating income: ¥673 million (-15.1% YoY); net income: ¥450 million (-30.5% YoY).

• Gross margin: 11.11%; SG&A expenses increased by 4.3% YoY.

• Net income per share: ¥76.02, down from ¥109.44 in the prior year.

• Total assets increased to ¥48,111 million as of December 31, 2025, from ¥45,871 million as of June 30, 2025.

• Net assets decreased slightly to ¥12,153 million from ¥12,255 million over the same period.

Outlook and guidance

• FY6/26 full-year sales forecast: ¥127.98 billion (+4.3% YoY); gross profit: ¥14.86 billion (+6.8% YoY); operating income: ¥2.0 billion (+1.0% YoY); net income: ¥1.32 billion (-7.6% YoY).

• Basic earnings per share for the full year is forecast at ¥223.04.

• Sixth consecutive year of revenue growth expected.

• Dividend forecast: ¥80 per share, maintaining a 4.0% yield.

• No revisions to previously announced forecasts or dividend plans.