Tokai Rika (6995) Q2 2026 earnings summary

Executive summary

• Achieved record-high 2nd quarter sales driven by increased production at major customers, with net sales for the six months ended September 30, 2025, rising 3.6% year-over-year to ¥314,823 million.

• Operating profit rose 8.3% year-over-year to ¥20,085 million due to higher sales and cost reduction initiatives.

• Profit attributable to owners of parent rose 73.6% year-over-year to ¥18,505 million.

• Comprehensive income improved significantly to ¥21,961 million from a loss of ¥1,369 million in the prior year period.

• Interim dividend increased by ¥10, raising total to ¥105 per share.

Financial highlights

• 2Q FY2026 sales reached ¥314.8bn, up 3.6% year-over-year.

• Operating profit for 2Q FY2026 was ¥20.0bn, up 8.3% year-over-year.

• Ordinary profit surged 64.7% year-over-year to ¥23,920 million.

• Basic earnings per share increased to ¥217.48 from ¥126.00 year-over-year.

• Total assets grew to ¥527,900 million, and equity ratio improved to 63.0%.

Outlook and guidance

• Full-year FY2026 operating profit forecast revised upward from ¥20bn to ¥29bn.

• Sales forecast for FY2026 is ¥620.0bn, a 0.4% increase year-over-year.

• Profit attributable to owners of parent projected at ¥26,000 million, up 6.5% year-over-year.

• Dividend forecast raised to ¥105.00 per share for FY2026.

• R&D expenses to increase in the next quarter due to strong order backlog.