Sakata INX (4633) Q2 2026 earnings summary

Executive summary

• Sales and profits increased in H1 FY2026, driven by price revisions, expanded sales, and procurement optimization, despite cost pressures from the Middle East situation and inflation.

• Growth was supported by higher sales volumes, successful price adjustments, and expansion in environmentally friendly and digital products.

• Stable product supply was prioritized, and joint procurement and production optimization helped offset rising costs.

• Strategic focus on environmentally-friendly products, digital transformation, and new business areas, including electronics, aligns with the long-term vision for 2030.

• A capital and business alliance with CONNECTEC JAPAN accelerates expansion into the electronics sector.

Financial highlights

• Net sales for H1 FY2026 rose to JPY142.0 billion, up 12.4% year-over-year; operating income increased to JPY9.0 billion, up 18.0%.

• Net income attributable to owners of parent was JPY6.6 billion, up 7.1% year-over-year.

• Gross profit for the period was JPY35.9 billion, up from JPY31.4 billion year-over-year.

• Cash and cash equivalents at period end increased to JPY19.2 billion.

• Basic earnings per share increased to JPY136.94 from JPY126.22 year-over-year.

Outlook and guidance

• Full-year net sales forecast revised upward to JPY286.5 billion (+11.2% YoY), reflecting strong demand for environmentally friendly products and continued price revisions.

• Operating and ordinary income forecasts remain unchanged at JPY17.0 billion and JPY17.8 billion, respectively, with net income forecast at JPY11.8 billion.

• Operating income is expected to grow for the fourth consecutive year.

• Assumes an average USD/JPY exchange rate of JPY155.00 for the full year.