Tokyo Seimitsu (7729) Q2 2026 earnings summary

Executive summary

• 1H FY2026/3 sales reached ¥77.1B, up 8% YoY, with orders rising 13.4% YoY to ¥80.6B, marking a historical peak for the first half.

• Operating profit increased 10% YoY to ¥14.7B, but net profit declined 29% YoY to ¥9.6B due to a ¥2.1B extraordinary loss for future defect countermeasures.

• The SPE segment saw robust demand, especially for HPC and HBM-related testing equipment, with orders arriving earlier than expected.

• The Metrology segment maintained stable orders from non-automotive sectors.

• Sales forecast for the full year was raised by ¥5.0B, and the annual dividend projection increased from ¥214 to ¥222 per share.

Financial highlights

• 1H orders rose 13% YoY to ¥80.6B; sales up 8% YoY to ¥77.1B; operating profit margin held at 19% in 1H.

• Recurring profit up 14% YoY to ¥15.0B; gross profit increased to ¥31.2B; EPS for the half-year was ¥237.18.

• 2Q sales surged 50% QoQ and 10% YoY to ¥46.2B; 2Q operating profit up 121% QoQ and 9% YoY to ¥10.1B.

• Comprehensive income dropped 34.2% YoY to ¥9.3B.

• Net profit for 1H fell 29% YoY due to extraordinary losses related to future defect countermeasures.

Outlook and guidance

• Full-year sales forecast raised to ¥164.0B (+9% YoY); operating profit forecast at ¥31.5B (+6% YoY); net profit forecast lowered to ¥20.5B (-20% YoY) due to extraordinary losses.

• EPS for the full year projected at ¥505.52.

• Dividend per share forecast increased to ¥222.

• Upward revision driven by stronger-than-expected SPE segment orders; extraordinary loss factored into net profit guidance.

• SPE segment expects continued high demand for HPC-related and high-end products, especially in China; Metrology segment anticipates strong 2H demand in aerospace and defense.