Rinnai (5947) Q2 2026 earnings summary

Executive summary

• Achieved record-high net sales of ¥216,415 million, up 2.0% year-over-year, driven by high-value-added and energy-efficient products.

• Operating income rose 8.2% to ¥22,725 million, and net income attributable to owners increased 30.0% to ¥15,918 million.

• Growth in Japan, the US, and Australia offset declines in China and flat results in South Korea and Indonesia.

• Despite global economic uncertainty, inflation, and challenging housing markets, growth was supported by product innovation and cost control.

Financial highlights

• Net sales: ¥216,415 million (+2.0% YoY); Operating income: ¥22,725 million (+8.2% YoY, margin 10.5%); Ordinary income: ¥25,272 million (+13.2% YoY, margin 11.7%); Net income: ¥15,918 million (+30.0% YoY, margin 7.4%).

• Gross profit increased to ¥75,936 million from ¥71,617 million year-over-year.

• Net income per share was ¥113.77, up from ¥85.99 in the prior year.

• Cash and cash equivalents at period-end were ¥137,555 million, up ¥1,255 million from March 2025.

• Sales of water heaters grew 1.2%, air conditioning appliances up 9.3%, while kitchen appliances and commercial-use equipment declined.

Outlook and guidance

• Full-year forecast maintained: net sales of ¥470,000 million (+2.1%), operating income of ¥50,000 million (+8.7%), and net income attributable to owners of ¥33,000 million (+11.1%).

• Dividend forecast for FY2026 raised to ¥100 per share, up from ¥80 per share in FY2025.

• Both net sales and operating income are ahead of first-half targets.