UT Group Co (2146) Q2 2026 earnings summary

Executive summary

• H1 FY3/2026 net sales fell 6.8% year-over-year to ¥83,295 million; operating income rose 37.0% to ¥4,937 million.

• Sales excluding divested businesses reached a first-half record, with profitability measures advancing.

• Net income attributable to owners fell 49.3% to ¥3,249 million, reflecting a prior-year ¥5,916 million gain on subsidiary and associate share sales.

• Technical employee count was 33,284, down 22,318 year-over-year; the comparison reflects the March 2025 sale of Green Speed Joint Stock Company.

Financial highlights

• H1 gross income was ¥15,919 million versus ¥15,203 million a year earlier; SG&A was ¥10,981 million versus ¥11,598 million.

• Ordinary income rose 35.3% to ¥4,993 million; income before income taxes was ¥4,972 million versus ¥9,648 million.

• EPS was ¥84.17 versus ¥161.17; diluted EPS was ¥80.22 versus ¥149.93.

• Comprehensive income was ¥3,398 million, down 50.4% year-over-year.

Outlook and guidance

• FY3/2026 forecast revised to sales of ¥168,000 million, operating income of ¥9,500 million, ordinary income of ¥9,600 million and net income attributable to owners of ¥6,100 million.

• Forecast EPS is ¥10.59 based on the planned 15-for-1 stock split; without the split, forecast EPS is ¥158.78.

• Hiring difficulties and stagnant Motor & Energy demand prompted downward revisions; operating margin is expected to remain in line with the initial plan.

• Dividend policy remains a 100% payout, with a ¥10 per-share forecast after the stock split.

• UT HITES secured a large worker-dispatch project for expected power-equipment demand from H2 FY3/2026 through 2028 and is strengthening recruitment.