Euglena (2931) Q2 2026 earnings summary

Executive summary

• Sales increased 8% year-over-year (YoY) to ¥26,507 million in H1 FY2026, driven by organic growth in the Healthcare business and strong performance across all group companies.

• Adjusted EBITDA rose 8.5% YoY to ¥3,804 million, operating profit grew 14.3% YoY to ¥1,871 million, and ordinary profit increased 45.8% YoY to ¥1,709 million.

• Net income turned positive for the first time in nine fiscal years, reaching ¥74 million, a turnaround from a ¥559 million loss in the prior year period.

• Comprehensive income improved to ¥1,189 million from a loss of ¥507 million YoY.

• Full-year revenue forecast was revised upward to ¥53 billion due to strong progress, with profit forecasts unchanged as upside is allocated to growth investments.

Financial highlights

• Healthcare business sales grew 7% YoY to ¥24,320 million, with diversified growth drivers across direct sales, OEM, and wholesale channels.

• Biofuel business sales increased 1.5x YoY to ¥764 million, supported by higher SAF/HVO prices and expanded feedstock trading.

• Agri-business sales rose 10% YoY to ¥1,351 million, with improved profitability and expanded production capacity following the Yamase acquisition.

• Adjusted EBITDA margin remained stable at approximately 14.4%, and operating profit margin improved to 7.1%.

• Gross profit increased to ¥18,336 million from ¥17,148 million YoY.

Outlook and guidance

• Full-year 2026 net sales forecast is ¥53,000 million, up 5.2% YoY, with a 51% progress rate at H1.

• Adjusted EBITDA is projected at ¥7,000 million (+0.9%), operating profit at ¥3,200 million (+2.5%), and ordinary profit at ¥2,800 million (+18.4%).

• Profit forecasts remain unchanged, with additional revenue allocated to growth investments for mid-term expansion.

• Commercial biofuel plant in Malaysia on track for H2 FY2028 start, targeting ¥30 billion in annual sales and over ¥6 billion in profit before tax at full ramp-up.