TS TECH Co. (7313) Q2 2026 earnings summary

Executive summary

• First half FY2026 revenue declined 7.0% year-over-year to ¥2,071.3 billion, with operating income down 59.5% and net income down 71.7%, mainly due to lower production, higher expenses, and adverse foreign exchange rates, despite cost control efforts.

• Production volumes fell in most regions except the Americas, which saw a 4.9% increase; Japan, China, and Asia/Europe experienced declines.

• Segment performance varied, with Japan and China showing resilience in operating income, while the Americas and Asia/Europe faced sharper declines.

• Net income attributable to owners of parent dropped 71.7% to ¥1,280 million, with foreign exchange effects contributing to the decline.

• Basic earnings per share fell to ¥10.77 from ¥36.36 year-over-year.

Financial highlights

• Operating margin dropped from 3.0% to 1.3% year-over-year in the first half.

• Capital investment increased 10.3% to ¥110.5 billion, while R&D expenses fell 26.9% to ¥71.5 billion.

• Cash dividend per share rose to ¥44 from ¥40 year-over-year.

• Total assets at period end: ¥411,666 million; total equity: ¥318,424 million.

• Cash and cash equivalents at period end: ¥93,092 million (down from ¥111,543 million at prior year-end).

Outlook and guidance

• Full-year FY2026 revenue forecast revised down to ¥4,200 billion, an 8.8% decrease from FY2025.

• Operating income projected to fall 27.0% year-over-year to ¥120 billion, with net income down 18.9%.

• Assumed average full-year exchange rates: USD/JPY ¥147.0, CNY/JPY ¥20.6.

• Dividend per share projected at ¥90 for FY2026, maintaining stable shareholder returns.

• Lower production and adverse exchange rates expected to continue impacting results, though cost reduction efforts are ongoing.