Nihon Kohden Corporation (6849) Q3 2026 earnings summary

Executive summary

• Net sales for the first nine months rose 3.5% year-over-year to ¥164,013 million, driven by strong international growth despite domestic softness.

• Operating income declined 16.5% to ¥9,134 million, impacted by lower domestic sales, higher SG&A expenses from wage and R&D increases.

• Extraordinary losses of ¥2.4 billion from early retirement payments led to a 21.2% drop in net income attributable to owners, totaling ¥6,408 million.

Financial highlights

• Net sales for 3Q YTD reached ¥164.0 billion, up 3.5% year-over-year; gross margin was 51.9%.

• Operating income was ¥9.1 billion, down 16.5% year-over-year; operating margin fell to 5.6%.

• Net income attributable to owners was ¥6.4 billion, down 21.2% year-over-year.

• Free cash flow improved to ¥12.5 billion from ¥6.3 billion in the prior year.

• Cash and cash equivalents at period-end were ¥43,089 million, up ¥28 million from the previous year-end.

Outlook and guidance

• FY2025 sales forecast revised downward by ¥5 billion to ¥235 billion; domestic sales revised down, overseas sales reaffirmed on a yen basis.

• Operating income forecast cut by ¥4 billion to ¥20 billion, reflecting lower sales and gross margin.

• Net income attributable to owners of parent forecast at ¥12,500 million (-11.3% year-over-year).

• Focus for 4Q is on consumables, services, and IT system solutions to secure sales and gross margin of 52% or more.

• Forecast based on exchange rates of 150 yen/USD and 174 yen/EUR.