Tokyo Century (8439 ) Q2 2026 earnings summary

Executive summary

• Net income for Q2 FY2025 reached ¥92.8 billion, up 115.2% year-over-year, driven by a Russia-related insurance settlement and solid underlying business growth.

• Revenues for the six months ended September 30, 2025 rose 4.1% year-over-year to ¥693.3 billion, with gross profit up 15.6% to ¥155.5 billion.

• Excluding extraordinary items, net income increased by ¥8.0 billion year-over-year, reflecting steady earnings power across all segments.

• The annual net income forecast was revised upward to ¥100.0 billion, with the annual dividend forecast raised to ¥72 per share.

• Growth investments included making Advantage Partners an equity-method affiliate and expanding pipelines in storage battery and related businesses.

Financial highlights

• Ordinary income for Q2 FY2025 was ¥77.2 billion, up 21.3% year-over-year; operating income rose 28.8% to ¥72.5 billion.

• EPS rose to ¥190.04, up 115.7% year-over-year.

• ROA increased to 2.7% and ROE to 18.1%, both showing significant improvement.

• Total assets stood at ¥6,848.8 billion as of September 30, 2025; shareholders’ equity ratio was 15.0%.

• Comprehensive income dropped to ¥15.1 billion from ¥182.7 billion year-over-year, mainly due to negative translation adjustments.

Outlook and guidance

• Annual net income forecast revised upward to ¥100.0 billion, reflecting higher-than-expected insurance settlement proceeds and robust business performance.

• Annual dividend forecast increased to ¥72 per share, with a payout ratio target of approximately 35%.

• Basic EPS projected at ¥204.69 for the full year.

• No change to the planned ¥32.0 billion risk buffer.