ShinMaywa Industries (7224) Q2 2026 earnings summary

Executive summary

• Achieved record-high 2Q orders received of ¥143.7B (+0.5% YoY), with net sales slightly down year-over-year but still the second-highest on record.

• Operating profit fell 20.0% YoY to ¥4.58B, ordinary profit dropped 28.2% to ¥4.0B, and profit attributable to owners decreased 12.3% to ¥2.79B.

• Order backlog as of 2Q increased 7.9% YoY to ¥338.3B.

• Full-year forecast revised only for ordinary profit, reflecting anticipated foreign exchange losses; other forecast items remain unchanged.

• Entered second year of medium-term management plan [SG-2026] under long-term [SG-Vision2030].

Financial highlights

• 2Q FY2025: net sales ¥122.96B (-0.9% YoY), operating profit ¥4.58B (-20.0% YoY), ordinary profit ¥4.0B (-28.2% YoY), profit attributable to owners ¥2.79B (-12.3% YoY).

• Basic earnings per share: ¥42.20 (down from ¥48.16 YoY); comprehensive income: ¥3.59B (down 12.8% YoY).

• Order backlog at 2Q: ¥338.3B (+7.9% YoY).

• Exchange rate impact: 146.3 yen/USD (vs. 152.5 yen/USD last year).

• Total assets: ¥267.32B (up ¥877M from March 31, 2025); cash and cash equivalents: ¥22.97B (down ¥5.31B from March 31, 2025).

Outlook and guidance

• FY2025 forecast: net sales ¥285.0B (+7.0% YoY), operating profit ¥15.0B (+7.4% YoY), ordinary profit ¥13.2B (-2.5% YoY), profit attributable to owners ¥9.2B (+2.7% YoY), basic EPS ¥139.09.

• No change in net sales or operating profit forecast, but ordinary profit forecast revised down by ¥800M.

• Annual dividend forecast: ¥54/share (DOE 3.1%), up ¥2 from previous year.

• Exchange rate assumption for 2H: 145 yen/USD; each ¥1 depreciation increases operating profit by ¥30M.