Sanko Techno (3435) Q2 2026 earnings summary

Executive summary

• Achieved 2.0% year-over-year revenue growth to ¥10,274 million for the first half of FY2026, slightly below plan by 2.1%.

• Operating income rose 0.5% year-over-year to ¥746 million, while ordinary income increased 10.1% to ¥825 million; operating income missed plan by 6.7%.

• Net income attributable to shareholders declined 7.7% year-over-year to ¥561 million, but exceeded plan by 2.0%.

• Progress toward full-year targets is on track, with 46.7% of revenue and 45.2% of operating income achieved.

• The company continues to implement its mid-term plan focusing on human resource development, optimization, and new business creation.

Financial highlights

• Revenue: ¥10,274 million (+2.0% YoY); Operating income: ¥746 million (+0.5% YoY); Net income: ¥561 million (−7.7% YoY).

• Ordinary income: ¥825 million (+10.1% YoY).

• Gross profit for the period was ¥3,174 million, up from ¥3,019 million year-over-year.

• Cash and equivalents increased by ¥444 million from the previous year, rising 10.9% to ¥4,368 million at period-end.

• Free cash flow improved by ¥338 million year-over-year to ¥830 million.

Outlook and guidance

• Full-year revenue target: ¥22,000 million (+3.5% YoY); operating income: ¥1,650 million (+28.7% YoY); net income forecast: ¥1,160 million (+4.3% YoY).

• Progress rates for revenue and profit are near 50% at the half-year mark.

• No changes have been made to previously announced earnings or dividend forecasts.

• Focus on high value-added products, new product launches, and logistics investment to drive growth.