TPR Co (6463) Q2 2026 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2025, declined 4.8% year-over-year to ¥90.3 billion, mainly due to lower sales in the Faltec Group and customer-side impacts.

• Operating profit decreased 9.2% year-over-year to ¥4.3 billion, primarily from changes in product mix in Japan.

• Profit attributable to owners of parent rose 48% year-over-year to ¥4.95 billion, driven by extraordinary income from asset sales.

• Strong performance in the Chinese market, especially among domestic manufacturers, supported overall earnings.

• Comprehensive income dropped sharply to ¥907 million from ¥12,920 million a year earlier, mainly due to negative foreign currency translation adjustments.

Financial highlights

• Net sales for the six months ended September 30, 2025, were ¥90.3 billion, down 4.8% year-over-year.

• Operating profit was ¥4.3 billion, down 9.2% year-over-year.

• Ordinary profit was ¥6.7 billion, down 2.8% year-over-year.

• Profit attributable to owners of parent rose to ¥4.95 billion, up 48% year-over-year.

• Gross profit for the period was ¥19.47 billion, with a gross margin of 21.6%.

• Basic earnings per share increased to ¥74.76 from ¥49.59 year-over-year.

• Total assets decreased to ¥284.66 billion, and net assets fell to ¥195.81 billion as of September 30, 2025.

• Cash and cash equivalents at period-end were ¥54.02 billion, down ¥6.78 billion from the previous fiscal year-end.

• 2Q performance exceeded 1Q, with net sales and operating profit increasing sequentially by 6.0% and 84.1%, respectively.

Outlook and guidance

• Full-year forecasts for FY ending March 31, 2026, remain unchanged, as first-half results were broadly in line with the plan.

• Full-year forecast for FY2026: net sales of ¥183.4 billion (down 4.7%), operating profit of ¥9.4 billion (down 16.2%), ordinary profit of ¥12.9 billion (down 18.3%), and profit attributable to owners of parent of ¥7.3 billion (down 17.7%).

• Basic earnings per share forecast is ¥110.68, reflecting a 2-for-1 stock split.

• Progress against full-year forecast: net sales at 49.3%, operating profit at 46.5%, ordinary profit at 52.5%, and profit attributable to owners of parent at 67.9%.

• Tariff impacts and other external factors are in line with initial expectations.