Totetsu Kogyo (1835) Q2 2026 earnings summary

Executive summary

• H1 FY3/26 net sales rose 6.0% YoY to ¥65,688 million, operating profit increased 52.2% to ¥6,270 million, and profit attributable to owners of parent rose 38.6% to ¥4,474 million.

• Comprehensive income more than doubled to ¥6,741 million, up 123.5% YoY.

• FY3/26 guidance remains unchanged at net sales of ¥165,000 million, operating profit of ¥16,000 million and net income of ¥12,000 million; planned orders and year-end carryover orders are lower YoY.

Financial highlights

• H1 gross profit increased 28.4% to ¥10,788 million; gross margin improved to 16.4% from 13.6%.

• Basic EPS was ¥129.93, up from ¥93.74 a year earlier.

• Total assets were ¥162,849 million, down ¥18,265 million from March 31, mainly due to lower receivables; net assets rose ¥3,825 million to ¥124,602 million.

• Cash and cash equivalents at period-end were ¥21,568 million.

Outlook and guidance

• FY3/26 forecast: net sales ¥165.0bn (+3.1%), operating profit ¥16.0bn (+3.1%), ordinary profit ¥16.5bn (+2.9%) and net income ¥12.0bn (+3.8%).

• Planned gross profit is ¥26.3bn (+6.6%), with 15.9% gross margin; SG&A is projected to rise 12.7% to ¥10.3bn.

• Planned orders are ¥139.4bn, down 6.7%; projected year-end carryover orders are ¥98.99bn, down 15.1%.

• Annual dividend forecast is ¥140 per share, up from ¥135 in the previous year.