TOKYO KEIKI (7721) Q2 2026 earnings summary

Executive summary

• Net sales increased 18.7% year-over-year to ¥24,425 million for 2Q FY2025, driven by strong growth in Defense & Communications Equipment and Marine Systems segments.

• Operating profit turned positive at ¥722 million, up from a loss in the prior year, with significant contributions from Defense & Communications Equipment.

• Profit attributable to owners of parent surged to ¥839 million from ¥63 million year-over-year.

• All line-item profits increased significantly year-over-year, reflecting improved segment performance.

• The order backlog reached a record high, reflecting robust demand across key businesses.

Financial highlights

• 2Q FY2025 net sales: ¥24,425 million, up ¥3,843 million (+18.7%) year-over-year.

• 2Q FY2025 operating profit: ¥722 million, up ¥827 million from a loss in the prior year.

• 2Q FY2025 ordinary profit: ¥825 million, up ¥796 million year-over-year.

• Comprehensive income reached ¥965 million, reversing a loss of ¥153 million in the prior year.

• Full-year FY2025 forecast revised upward: net sales ¥60,300 million, operating profit ¥4,000 million.

Outlook and guidance

• Full-year net sales forecast raised to ¥60,300 million; operating profit forecast raised to ¥4,000 million.

• Profit attributable to owners of parent forecast at ¥2,860 million, down 24.7% year-over-year.

• Extraordinary losses for headquarters relocation revised down from ¥890 million to ¥510 million.

• Exchange rate for 2H revised to ¥150/USD; sensitivity: ¥1 depreciation impacts operating profit by +¥9 million.

• Dividend forecast increased to ¥40 per share.