Takara Standard (7981) Q2 2026 earnings summary

Executive summary

• Net sales for H1 FYE3/2026 reached ¥123.1bn, up 6.2% YoY, with operating profit up 46.3% to ¥8.7bn and profit attributable to owners up 79.0% to ¥6.9bn.

• Comprehensive income increased 84.1% YoY to ¥7.5bn.

• Growth was driven by strong new construction demand, higher unit prices, and cost control measures.

• Full-year forecasts were revised upward: net sales expected at ¥250.0bn (+2.7% YoY), operating profit at ¥17.5bn (+11.9% YoY), and ROE targeted at 6.7%.

Financial highlights

• Gross profit margin improved to 35.1% from 34.2% YoY, with gross profit at ¥43.2bn.

• Ordinary profit rose 46.8% YoY to ¥9.0bn.

• Basic earnings per share for H1 was ¥104.88, up from ¥56.83 a year earlier.

• Free cash flow for H1 was ¥4.2bn, with cash and equivalents at period end of ¥61.7bn.

• Balance sheet remained stable with total assets at ¥277.3bn and net assets at ¥193.1bn.

Outlook and guidance

• Full-year sales and profit forecasts revised upward due to strong H1 performance.

• Net sales forecast at ¥250.0bn, operating profit at ¥17.5bn, profit attributable to owners at ¥13.0bn, and basic EPS at ¥193.33.

• Remodeling sales expected to rise slightly despite market weakness; new construction to exceed prior year and initial forecasts.

• Annual dividend to increase by ¥22 to ¥100 per share, with a payout ratio around 50%.

• Share buybacks of approximately ¥22bn planned over this and next fiscal year, targeting a total payout ratio of 130%.