MISUMI Group (9962) Q2 2026 earnings summary

Executive summary

• Net sales for 1H FY2025 rose 3.9% year-over-year to ¥205.8 billion, driven by proprietary initiatives, Fictiv integration, and steady demand in telecommunications, electronics, and electrical equipment, especially in China and Asia, despite weak automotive demand in Japan and Europe and ongoing tariff and forex pressures.

• Profitability declined due to growth-related investments, acquisition costs, and exchange rates, but overall results were in line with initial plans.

• The acquisition of Fictiv Inc. and its subsidiaries was completed and consolidated from July, resulting in a significant increase in goodwill and strong post-acquisition performance.

Financial highlights

• 1H FY2025 net sales reached ¥205.8 billion, up 3.9% YoY; operating income was ¥19.6 billion, down 16.1% YoY; net income was ¥13.9 billion, down 23.1% YoY.

• Gross profit increased to ¥95.0 billion from ¥92.8 billion YoY; ordinary income decreased to ¥20.4 billion from ¥25.2 billion; comprehensive income surged to ¥17.9 billion, up 79.5% YoY due to foreign currency translation adjustments.

• Overseas sales grew 8.1% YoY, while Japan sales declined 1.5% YoY.

• Net assets increased to ¥357.1 billion, with an equity ratio of 83.3%.

Outlook and guidance

• Full-year FY2025 sales forecast revised upward to ¥432 billion (+7.5% YoY), with operating income projected at ¥45.5 billion and net income at ¥33.9 billion.

• Net income per share forecast raised to ¥124.67, reflecting improved expectations from Fictiv consolidation and favorable exchange rates.

• Dividend forecast for the year-end revised to ¥25.62 per share, with a total annual dividend of ¥43.64 per share (payout ratio 35%).

• Overseas growth, especially in the U.S., China, and Asia, is expected to accelerate, while Europe’s recovery remains slow.