Nisshinbo (3105) Q2 2026 earnings summary

Executive summary

• Revenue and profit rose year-over-year, led by strong performance in Wireless and Communications, Defense, Marine Systems, and Specialized Equipment, despite declines in Real Estate.

• Structural reforms and cost reductions, especially in the Japan Radio Group and MicroDevices Business, contributed to improved margins.

• The Future Innovation Division is being reinforced to directly link R&D outcomes to business growth, focusing on wireless communications, sensing, and AI.

• Comprehensive income reached ¥35,310 million, a significant increase from ¥271 million in the prior year period.

Financial highlights

• Net sales increased 7.0% year-over-year to ¥272,462 million for 2Q FY2026.

• Operating income rose 64.4% to ¥30,274 million; ordinary income up 71.0% to ¥32,520 million; net income attributable to owners of parent surged 87.8% to ¥21,590 million.

• Gross profit increased to ¥74,416 million from ¥64,703 million year-over-year.

• Basic earnings per share rose to ¥138.22 from ¥73.53 year-over-year.

• Equity-to-asset ratio improved to 49.3% from 43.0% at year-end 2025.

Outlook and guidance

• Full-year FY2026 forecast remains unchanged: net sales ¥511,000 million, operating income ¥21,000 million, net income ¥10,000 million.

• Despite strong first-half results, the company continues structural reforms and increased R&D and HR investments for sustainable growth.

• Annual dividend forecast is ¥36.00 per share, unchanged from the previous year.