Nakanishi (7716) Q2 2026 earnings summary

Executive summary

• Achieved double-digit sales growth across all business segments, with notable strength in Japan's Dental and Surgical businesses and all segments posting double-digit revenue growth.

• Consolidated net sales rose 20.5% year-over-year to ¥47,234 million, supported by yen depreciation and M&A contributions from Acra Cut and Intech.

• EBITDA increased 22.9% year-over-year to ¥12,769 million, with operating income up 32.0% to ¥10,012 million and net income attributable to owners of parent up 132.0% to ¥8,144 million.

• Full-year financial forecast revised upward, with operating, ordinary, and net profit expected to reach record highs (excluding prior year one-off gains).

• Enhanced shareholder returns with a higher share repurchase limit and a two-for-one stock split effective October 1, 2026.

Financial highlights

• Q2 FY2026 net sales: ¥47,234M (+20.5% YoY); gross profit: ¥27,424M (+18.7% YoY); EBITDA: ¥12,769M (+22.9% YoY); operating profit: ¥10,012M (+32.0% YoY); net profit: ¥8,144M (+132.0% YoY); EPS: ¥98.07 (+67.1% YoY).

• Forex impact added ¥2,884M to net sales YoY.

• All segments posted double-digit sales growth: Dental (+14.6%), DCI (+23.6%), Surgical (+53.4%), Industrial (+28.6%).

• Regional sales growth: Japan (+25.2%), North America (+25.7%), Europe (+23.2%), Asia (+9.8%), Others (+4.2%).

• Total assets increased to ¥174,551M, and net assets to ¥122,009M as of June 30, 2026.

Outlook and guidance

• FY2026 net sales forecast revised to ¥94,480M (+16.4% YoY); EBITDA ¥24,340M (+22.3% YoY); operating profit ¥16,215M (+15.0% YoY); net profit ¥13,544M (+21.0% YoY).

• EPS forecast for FY2026 is ¥81.55 post-stock split (¥163.10 pre-split).

• Assumed exchange rates: ¥155/USD, ¥180/EUR for 2H.

• All business segments expected to continue growth, with Dental and DCI leading.