Seibu Giken (6223) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 FY2026 rose 30.5% year-over-year to JPY 18,132 million, driven by large engineering projects and growth in desiccant dehumidifiers.

• Operating profit increased 26.1% year-over-year to JPY 2,562 million, with ordinary profit up 43.4% to JPY 2,848 million.

• Net profit attributable to shareholders surged 70.8% year-over-year to JPY 2,555 million, and comprehensive income rose 239.5% to JPY 3,318 million.

• Basic earnings per share for the period was JPY 130.67, up from JPY 74.06 in the prior year.

• Progress against the full-year forecast is on track, with no changes to guidance.

Financial highlights

• Gross profit rose to JPY 6,179 million from JPY 5,124 million year-over-year, though gross margin declined slightly.

• EBITDA increased 23.7% year-over-year to JPY 3,085 million; EBITDA margin was 17.0%.

• Cash and cash equivalents at June 30, 2026, were JPY 15,015 million.

• Free cash flow for Q2 FY2026 was negative JPY 3,323 million, reflecting increased investment.

• Total assets grew to JPY 50,526 million as of June 30, 2026, up from JPY 48,197 million at the previous year-end.

Outlook and guidance

• FY2026 net sales forecast remains at JPY 36,050 million, up 5.0% year-over-year.

• Operating profit is forecast to decrease 11% year-over-year to JPY 4,030 million due to higher SG&A and human capital investments.

• Ordinary profit is forecast at JPY 4,460 million (down 0.8%), and net profit at JPY 3,870 million (up 12.0%).

• Basic earnings per share for the full year is projected at JPY 199.61.

• Annual dividend per share for FY2026 is planned at JPY 70; share buyback of approx. JPY 1 billion executed.