Tokyo Ohka Kogyo (4186) Q2 2026 earnings summary

Executive summary

• Net sales for 1H FY2026 rose 25.1% year-over-year to ¥139.6 billion, driven by strong demand for AI server-related products in both electronic functional materials and high-purity chemicals.

• Operating income increased 45.4% year-over-year to ¥28.8 billion, and profit attributable to owners of parent grew 49.9% to ¥20.4 billion.

• The company revised full-year forecasts upward, anticipating record-high results for the third consecutive year and executing its Medium-Term Plan 2027.

Financial highlights

• Net sales: ¥139.7 billion (+25.1% YoY); operating income: ¥28.9 billion (+45.4% YoY); EBITDA: ¥34.3 billion (+43.0% YoY).

• Ordinary income: ¥30.3 billion (+48.5% YoY); profit attributable to owners of parent: ¥20.4 billion (+49.9% YoY); comprehensive income: ¥27.3 billion (+92.0% YoY).

• Gross profit reached ¥53.95 billion, up from ¥41.15 billion year-over-year.

• Basic earnings per share increased to ¥170.21 from ¥113.83 year-over-year.

• Average exchange rate: ¥157.4/$ in 1H FY2026 vs. ¥147.0/$ in 1H FY2025.

Outlook and guidance

• Full-year FY2026 net sales forecast: ¥291.0 billion (+22.8% YoY); operating income: ¥60.6 billion; ordinary income: ¥63.0 billion; profit attributable to owners of parent: ¥42.6 billion.

• ROE expected to rise to 17.3% from 15.6% in FY2025.

• Forecasts assume a revised exchange rate of ¥155/$ for 2H FY2026.

• Both operating income and EBITDA are expected to exceed Medium-Term Plan 2027 targets ahead of schedule.