Sankyu (9065) Q2 2026 earnings summary

Executive summary

• First-half net sales reached a record ¥315,539 million, up 5.5% year over year; operating profit rose 2.6% to ¥20,559 million and profit attributable to owners of parent rose 2.1% to ¥13,507 million.

• Plant Engineering drove sales growth, while an overseas doubtful-account provision and incomplete Logistics cost pass-through weighed on profitability and remain priorities for stronger controls and reforms.

• Full-year forecasts and the annual dividend were raised; the dividend is ¥236 per share.

• Comprehensive income fell 31.5% to ¥12,542 million, mainly due to negative foreign-currency translation adjustments.

Financial highlights

• First-half gross profit increased to ¥36,708 million from ¥34,359 million; basic EPS rose to ¥259.75 from ¥241.67.

• Consolidated operating margin was 6.5%, versus 6.7% a year earlier; net profit margin was 4.3%, versus 4.4%.

• Cash and cash equivalents decreased to ¥38,867 million from ¥47,250 million a year earlier.

• Logistics operating profit margin was 3.2%, up from 2.8%; Plant Engineering margin was 9.5%.

Outlook and guidance

• FY2026 forecast revised to net sales ¥624,500 million, operating profit ¥42,000 million, ordinary profit ¥41,000 million and profit attributable to owners of parent ¥30,000 million.

• Annual dividend guidance rose ¥4 to ¥236 per share; the payout ratio is 40.3%, against a 40% policy target.

• Plant Engineering forecasts were upgraded on strong orders, large-scale onsite and environmental projects, and additional maintenance work.

• Logistics full-year operating profit forecast remained ¥10 billion; pricing, cost improvement and structural reforms remain priorities.

• A further ¥230 million doubtful-account allowance is planned for H2 at the overseas Plant Engineering subsidiary.