CTI Engineering Co (9621) Q2 2026 earnings summary

Executive summary

• Orders received for Q2 2026 were 61,053 million yen, up 0.2% year-on-year, with sales rising 8.3% to 55,003 million yen and operating income up 10.7% to 6,617 million yen; net income attributable to owners increased 17.1% to 4,427 million yen, reflecting strong domestic and overseas demand.

• Full-year outlook remains positive, with sales and profits expected to rise in line with the initial plan and Mid-Term Management Plan targets.

• Dividend forecast was revised upward to 110 yen per share, and a treasury share acquisition of up to 3 billion yen (up to 1.2 million shares) was announced.

• The business environment benefited from increased public works budgets in Japan and rising overseas infrastructure demand, though global and UK uncertainties remain.

Financial highlights

• Orders received: 61,053 million yen (+0.2% YoY); Sales: 55,003 million yen (+8.3% YoY); Operating income: 6,617 million yen (+10.7% YoY); Net income: 4,427 million yen (+17.1% YoY).

• Operating income margin improved to 12% in Q2 2026 from a dip in Q2 2025.

• Net income per share was 161.93 yen, up from 136.11 yen in the prior year period.

• Total assets increased to 99.4 billion yen, and net assets rose to 68.4 billion yen as of June 30, 2026.

• Net worth ratio stood at 68.4%, down 0.7 percentage points.

Outlook and guidance

• Orders received and sales reached 58.1% and 52.4% of the full-year plan, respectively; operating income and net income at about 63% of full-year targets.

• Full-year forecast unchanged, expecting increases in both sales and operating income; sales forecast at 105,000 million yen and operating income at 7,000 million yen.

• Dividend forecast for FY2026 revised upward to 110 yen per share (payout ratio 42.7%).

• Mid-Term Management Plan targets 110 billion yen sales and 12 billion yen operating income by FY2027.

• Dividend payout ratio target set at 30% or more under the Mid-Term Management Plan 2027.