Daiichikosho (7458 ) Q2 2026 earnings summary

Executive summary

• Net sales for the first half reached a record high of ¥80,276 million, up 8.0% year-on-year, driven by strong new product sales and growth across all core businesses, especially the new LIVE DAM WAO! system.

• Operating profit declined 6.3% to ¥8,430 million, mainly due to increased SG&A expenses and one-time costs related to new product rollouts.

• Profit attributable to owners of parent dropped 36.3% to ¥6,117 million, reflecting the absence of prior-year gains from asset sales.

• The parking business expanded steadily, with a 7.8% increase in facilities and a 9.1% rise in parking spots year-on-year.

• A 4.0 billion yen gain from the sale of the head office building is expected at year-end, prompting a 10-yen commemorative dividend increase.

Financial highlights

• First-half net sales: ¥80,276 million (+8.0% YoY); operating profit: ¥8,430 million (-6.3% YoY); net income: ¥6,117 million (-36.3% YoY).

• Gross profit increased to ¥27,685 million from ¥26,349 million year-over-year.

• Free cash flow turned negative at -¥1,818 million, mainly due to higher capital investments.

• Shareholders’ equity ratio stands at 58.3%.

• Cash and cash equivalents at period-end were ¥26,387 million, down ¥15,197 million from the previous year-end.

Outlook and guidance

• Full-year net sales forecast remains unchanged at ¥162,700 million, with operating profit projected at ¥18,000 million.

• Net income forecast revised upward to ¥15,400 million, reflecting the extraordinary gain from the head office sale.

• Year-end dividend forecast raised by 10 yen to 67 yen per share (including commemorative dividend).

• Operating profit expected to remain flat due to offsetting effects of higher sales and increased costs.

• No changes to previously announced forecasts.