PHC (6523) Q2 2026 earnings summary

Executive summary

• Operating profit forecast was revised upward by JPY 2.6 billion, with annual dividend forecast maintained, despite JPY 6.8 billion FX losses through Q2 and a net loss attributable to owners.

• Revenue remained stable year-over-year, with growth in Diabetes Management and Healthcare Solutions offsetting declines in Diagnostics & Life Sciences due to FX and weak US demand.

• CGM business transfer is in final negotiation stages, expected to close January 2026, with impact included in forecasts.

• Interim dividend set at JPY 21 per share, with annual forecast maintained at JPY 42 per share.

Financial highlights

• Interest-bearing debt decreased by JPY 7.6 billion to JPY 247.7 billion; cash and cash equivalents fell by JPY 6.3 billion in Q2.

• Operating profit rose 12.7% year-on-year to JPY 10,378 million; adjusted EBITDA increased 4.2% to JPY 24,260 million.

• Net cash provided by operating activities was JPY 12.1 billion; capital expenditure JPY 4.4 billion; financial cash flow outflow JPY 17.6 billion.

• ROE for the quarter was 4.2%, reflecting a year-on-year decrease in profit attributable to owners.

• Profit attributable to owners revised to JPY 4.4 billion, down JPY 3 billion after tax adjustments.

Outlook and guidance

• Full-year revenue forecast remains at JPY 363,100 million, with operating profit revised upward to JPY 20,000 million.

• FX rates assumed at JPY 171/EUR and JPY 146/USD; full-year outlook stable with unchanged dividend forecast.

• No impairment loss required after recent test; risk of impairment is lower than previously.

• Tariff impact for the year expected at JPY 1–1.5 billion, with mitigation measures ongoing.

• Segment guidance: Diabetes Management revised upward, Healthcare Solutions and Diagnostics & Life Sciences revised downward.