Open Up Group (2154) Q2 2026 earnings summary

Executive summary

• Revenue declined year-over-year due to the divestment of the UK business, but profit increased as structural reforms prioritized profit structure over utilization growth.

• Excluding the UK business, both revenue and profit increased, with ongoing focus on improving profit margins.

• The first half marked the completion of a one-year structural reform investment phase.

• Segment structure was revised, splitting the former Machinery, Electronics and IT Software Segment into Machinery and Electronics, and IT Segments.

Financial highlights

• Consolidated revenue for 1H FY2026 was ¥83.57 billion, down 17.3% YoY due to the UK business sale; excluding the UK, revenue rose 5.9% YoY.

• Operating profit for 1H FY2026 was ¥9.06 billion, up 1.0% YoY; excluding the UK, operating profit rose 5.5% YoY.

• Net income for 1H FY2026 was ¥6.48 billion, up 10.2% YoY.

• Gross profit margin improved to 28.3% in Q2 FY2026 from 24.7% in Q2 FY2025; gross profit margin for the period was 27.7%, up 3.2 points YoY.

• SGA cost ratio remained stable at around 17%.

• Total assets increased to ¥125.48 billion as of December 31, 2025, up 2.3% from June 30, 2025.

• Equity attributable to owners of parent decreased to ¥77.59 billion, with a ratio to total assets of 61.8%.

• Cash and cash equivalents rose to ¥21.11 billion, up ¥754 million from the previous fiscal year-end.

• Net cash provided by operating activities was ¥9.77 billion, while net cash used in investing and financing activities were ¥2.69 billion and ¥6.35 billion, respectively.

• Basic earnings per share for the period was ¥75.95, up from ¥67.75 year-over-year.

Outlook and guidance

• Full-year revenue forecast is ¥171.0 billion, with a progress rate of 48.9% at 1H; this represents a 9.0% decrease YoY.

• Full-year operating profit forecast is ¥16.5 billion (+1.6%), with a progress rate of 54.9%.

• Business profit is projected at ¥16.25 billion (+3.9%), and profit attributable to owners of parent at ¥11.8 billion (-6.0%).

• No changes have been made to previously announced forecasts.

• Dividend payout ratio raised to 60% or higher, with a ¥10 increase in annual dividend to ¥85 per share.