TOPPAN (7911) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of fiscal 2025 rose 4.3% year-over-year to ¥863.6 billion, driven by new entities joining the scope of consolidation, digital and sustainable transformation initiatives, and major acquisitions such as Sonoco TFP and Irplast S.p.A.

• Non-GAAP operating profit increased 14.0% year-over-year to ¥38.6 billion, while GAAP operating profit declined 12.8% to ¥24.7–24.8 billion due to M&A-related expenses and a downturn in FC-BGA earnings in Q1.

• Profit attributable to owners of parent decreased 9.2% year-over-year to ¥29.8–29.9 billion, reflecting higher costs and extraordinary items.

• Significant changes in consolidation scope with 27 new companies added, including TOPPAN Packaging USA Inc.

• Segment performance was mixed: Living & Industry saw profit growth from M&A, Information & Communication improved in profit, and Electronics rebounded in Q2 after a weak Q1.

Financial highlights

• Gross profit margin improved by 0.4 percentage points to 23.5%, with gross profit rising to ¥203.2 billion.

• Comprehensive income dropped 55.3% to ¥19.6 billion due to negative foreign currency translation adjustments.

• SG&A expenses increased, mainly from new entities, raising the SG&A-to-sales ratio by 1.0 percentage point.

• EBITDA remained stable at ¥68.7 billion, down 0.2% year-over-year.

Outlook and guidance

• Full-year net sales forecast revised to ¥1,790.0 billion, with operating profit guidance lowered to ¥70.0 billion and net profit forecast at ¥70.0 billion.

• Basic earnings per share projected at ¥230.40–248.12, with a dividend per share of ¥56.0.

• Fiscal 2026 is expected to see significant profit growth as one-time costs decrease and new business contributions ramp up.