Nippon Electric Glass (5214) Q2 2026 earnings summary

Executive summary

• Net sales for 2Q FY2026 rose 1.7% year-over-year to ¥156.4 billion, driven by strong display demand, but offset by increased costs and restructuring expenses.

• Operating profit declined 31.8% year-over-year to ¥11.3 billion due to higher expenses in displays and startup costs in medical care.

• Ordinary profit increased 14.7% year-over-year to ¥16.3 billion, supported by foreign exchange gains.

• Profit attributable to owners fell 36.4% year-over-year to ¥4.6 billion, mainly due to extraordinary losses from business restructuring in North America.

• Structural reforms included closure of U.S. glass fiber plants, incurring ¥12.6 billion in restructuring expenses.

Financial highlights

• Operating margin for 2Q FY2026 was 7.3%, down from 10.8% in the prior year.

• Basic earnings per share for 2Q FY2026 was ¥63.25, compared to ¥127.51 in the previous year.

• Dividends per share for the interim period were ¥80, with a full-year forecast of ¥160.

• Cash and deposits decreased by ¥20 billion to ¥100.6 billion as of June 2026.

• Comprehensive income improved to ¥20.1 billion from a loss of ¥6.4 billion in the prior year period.

Outlook and guidance

• Full-year FY2026 net sales are forecast at ¥300 billion, with operating profit of ¥20 billion and profit attributable to owners at ¥15 billion.

• Earnings per share for the year forecast at ¥201.90, reflecting share repurchases.

• The global economic outlook remains uncertain due to a slowdown in China, Middle East tensions, and geopolitical risks.

• Dividend policy remains stable, with no reductions for over 20 years and a planned share repurchase of ¥20 billion in FY2026.

• Demand in displays is expected to decline slightly in the second half, while electronics sales are projected to expand and composites to fall due to restructuring.