Kanadevia (7004) Q2 2026 earnings summary

Executive summary

• Orders increased year-over-year, but net sales for the six months ended September 30, 2025, declined 0.8% to ¥267.7 billion, with an operating loss of ¥7.8 billion and net loss attributable to shareholders of ¥5.5 billion.

• Operating income declined due to fewer high-margin projects in the Environmental Business, deteriorating profitability in the Infrastructure Business, and cost increases.

• Full-year forecasts for operating income, ordinary income, and net income were revised downward due to business mix, profitability issues, and operational troubles.

Financial highlights

• 1-2Q FY2025 order intake: ¥307.5bn (+¥22.7bn YoY); net sales: ¥267.7bn (-¥2.2bn YoY); operating income: -¥7.8bn (-¥11bn YoY); net income attributable to shareholders: -¥5.5bn (down from ¥22.1bn YoY).

• Ordinary income dropped from ¥0.6bn to a loss of ¥8.3bn YoY.

• Net income per share declined to ¥(32.74) from ¥(6.77) YoY.

• ROE dropped to 5.2% (from 12.6% YoY); ROIC at 4.0% (from 6.8% YoY).

• Cash flows from operating activities: -¥3.6bn (down ¥38.9bn YoY); cash and cash equivalents at end: ¥49.6bn.

Outlook and guidance

• Full-year forecasts: order intake ¥700bn, net sales ¥620bn, operating income ¥18bn, ordinary income ¥14bn, net income ¥10bn.

• Operating income forecast revised down by 33.2%; net income forecast revised down by ¥6bn from prior guidance.

• Segment forecasts revised downward due to cost increases and operational issues.