Union Tool (6278) Q2 2026 earnings summary

Executive summary

• Achieved record first-half results for the second consecutive period, driven by strong demand for high-quality products and data center server growth related to AI.

• Net sales for the six months ended June 2026 were ¥27,055 million, up 48.3% year-over-year.

• Operating profit rose 81.4% to ¥7,595 million compared to the same period last year.

• Profit attributable to owners of parent increased 108.7% to ¥5,962 million year-over-year.

• Comprehensive income surged 318.3% to ¥8,398 million year-over-year.

Financial highlights

• Basic earnings per share for the period was ¥327.93, up from ¥165.37 a year earlier.

• Total assets as of June 2026 were ¥131,341 million, with net assets at ¥88,202 million.

• Capital adequacy ratio improved to 91.0% from 90.7% at the end of December 2025.

• Interim dividend per share was ¥75.00, with a forecasted year-end dividend of ¥70.00, totaling ¥145.00 for the year.

• Favorable forex rates contributed significantly to sales and profit growth.

Outlook and guidance

• Full-year FY2026 net sales forecasted at ¥56,100 million, up 39.7% year-over-year.

• Operating profit expected to nearly double to ¥16,800 million, with a margin of 29.9%.

• Profit attributable to owners of parent projected at ¥12,300 million, up 113.9% year-over-year.

• EPS projected at ¥631.30, up from ¥353.86 in FY2025.

• Dividend payout ratio targeted at 35% or higher, with DOE of 3% or higher.