Daido Metal (7245) Q2 2026 earnings summary

Executive summary

• Net sales for the period were ¥67,596 million, down 1.2% year-over-year, while operating profit rose 43.7% to ¥3,891 million and net profit attributable to owners increased 218.4% to ¥1,682 million.

• Ordinary profit increased 26.5% to ¥3,315 million.

• Basic EPS was ¥35.83.

• Profit growth was driven by sales increases (excluding exchange rate effects), cost improvements, and reduced air freight expenses, offsetting higher labor costs and depreciation.

• Comprehensive income declined 54.9% year-over-year to ¥2,394 million.

Financial highlights

• Operating margin improved by 1.8 points to 5.8% year-over-year; net profit margin rose by 1.7 points to 2.5%.

• Return on equity (ROE) increased to 4.6% from 1.5% a year earlier.

• Gross profit for the period was ¥16,782 million, up from ¥16,320 million year-over-year.

• Net interest-bearing debt rose 7.3% to ¥37,084 million.

• Net cash provided by operating activities increased to ¥5,445 million from ¥5,232 million year-over-year.

Outlook and guidance

• Full-year forecast projects net sales of ¥134,000 million, operating profit of ¥8,000 million (up 12.8%), and net profit of ¥3,500 million (up 28.7%).

• Dividend forecast for FY2025/FY2026 is ¥24 per share, with a payout ratio of 32.2%.

• Annual dividend forecast is up from ¥18.00 in the previous year.