THK (6481) Q2 2026 earnings summary

Executive summary

• Revenue for the first half of FY 2026 reached ¥151.067 billion, up 32.4% year-on-year, driven by strong industrial machinery and semiconductor demand, as well as AI-related sectors and a weaker yen.

• Operating income surged 268.9% year-on-year to ¥22.483 billion, with margin improving to 14.9%, surpassing the revised plan by ¥7 billion.

• Profit attributable to owners of the parent soared 805.3% to ¥33.744 billion, reflecting a significant gain from the transfer of the automotive & transportation business.

• The transfer of the automotive & transportation business was completed on June 1, 2026, resulting in a gain of ¥16.436 billion from the reversal of foreign currency translation adjustment.

• Revenue and operating income exceeded the revised May 2026 plan by ¥13.0 billion and ¥7.0 billion, respectively.

Financial highlights

• Gross profit increased to ¥51.883 billion from ¥33.938 billion year-over-year.

• COGS ratio decreased by 4.6 points year-on-year to 65.7%; SG&A ratio decreased by 4.8 points to 18.6%.

• Net cash provided by operating activities was ¥18.868 billion; investing activities used ¥23.660 billion, mainly due to the business transfer.

• Total assets increased to ¥480.597 billion, and total equity rose to ¥275.996 billion as of June 30, 2026.

• Profit attributable to owners for 1H 2026 was ¥33.7 billion.

Outlook and guidance

• Full-year 2026 revenue forecast revised to ¥310.0 billion, up 28.9% year-on-year; operating income forecast at ¥48.0 billion.

• Net income forecast for FY2026 is ¥54.8 billion, reflecting the gain on business transfer.

• Basic earnings per share for the year is projected at ¥488.97.

• Dividend projection revised to ¥195.00 per share for 2026, based on a DOE ratio of 8%.

• Profit increase mainly attributed to higher sales volume and favorable exchange rates.