Sanoh Industrial (6584) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 FY2025 were ¥78,522 million, down 3.2% year-over-year, mainly due to weak sales in Europe and China and adverse currency effects, despite growth in Japan from new project launches.

• Operating income rose 41.0% to ¥3,361 million, driven by reduced one-time expenses in the Americas, new project contributions in Japan, and workforce restructuring in Europe and China.

• Net income attributable to shareholders surged 158.3% to ¥2,979 million, boosted by a ¥2,595 million gain on bargain purchase from the acquisition of a Mexican subsidiary, offset by special retirement expenses.

Financial highlights

• Gross profit increased to ¥13,156 million from ¥11,743 million year-over-year.

• Operating income margin improved to 4.3% from 2.9% year-over-year.

• Ordinary income increased 13.1% to ¥2,438 million, despite foreign exchange losses.

• Profit before tax jumped 133.1% to ¥4,458 million.

• EPS for the period was ¥83.18, up from ¥32.22 in the prior year.

Outlook and guidance

• Full-year sales forecast is ¥147,000 million (53.4% progress as of Q2), with operating income forecast at ¥5,500 million (61.1% progress).

• Net income forecast for the year is ¥1,800 million, already exceeded by Q2 results.

• No changes to previously announced earnings forecasts.

• Management expects continued earnings contribution from new project launches in Japan through FY2025.