SEIKO GROUP (8050) Q2 2026 earnings summary

Executive summary

• Net sales for 1H FY25 reached ¥160.5 billion, up 6.3% year-over-year, with strong overseas demand and steady domestic performance.

• Operating profit rose 26.2% year-over-year to ¥16.8 billion, driven by strong performances in the EVS and DS domains.

• Profit attributable to owners of parent increased 44.2% to ¥12.4 billion.

• Comprehensive income grew to ¥9.5 billion, up from ¥7.7 billion in the prior year period.

• The annual dividend forecast was raised to ¥130 per share, reflecting improved earnings and a year-end dividend of ¥70.

Financial highlights

• Gross profit for 1H FY25 was ¥74.1 billion, up 8.6% year-over-year, with a gross margin improvement of 1.0pt to 46.2%.

• Ordinary profit rose 35.6% year-over-year to ¥17.3 billion, aided by foreign exchange gains.

• Basic earnings per share improved to ¥305.88 from ¥212.40 year-over-year.

• Free cash flow improved to ¥6.5 billion in 1H FY25, up from ¥4.7 billion in the prior year.

• Cash and cash equivalents at period end were ¥40.8 billion, up ¥1.4 billion from March 31, 2025.

Outlook and guidance

• FY25 net sales forecast revised upward to ¥318.0 billion (+¥4.0 billion from previous forecast), and operating profit to ¥24.5 billion (+¥1.0 billion).

• Profit attributable to owners of parent forecast at ¥16.0 billion.

• The DS business forecast was revised downward due to rising silver prices, but overall guidance remains positive.

• Dividend payout ratio for FY25 is projected at 44.5%.

• Annual dividend forecast raised to ¥130 per share.