Nittoseiko Co (5957) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 FY2026 rose 6.3% year-over-year to ¥25,352 million, with operating profit up 31.3% to ¥1,941 million and net profit attributable to shareholders up 41.4% to ¥1,203 million.

• Growth was driven by strong overseas sales, especially in India and Southeast Asia, robust demand for high-value-added and proprietary automotive products, and contributions from Indian subsidiaries.

• All major business segments except Medical showed year-over-year revenue growth, with Fastener and Assembly Machine segments leading.

• The company launched a new medium-term management plan focused on business expansion, sustainability, human capital, and finance.

Financial highlights

• Gross profit increased 8.5% year-over-year to ¥6,266 million, with gross margin improving to 24.7%.

• SG&A expenses were stable, with a notable decrease in M&A-related costs compared to the previous year.

• Overseas sales accounted for 33.0% of total sales, up from 28.9% last year, with significant growth in South Asia (+117.7%) and Southeast Asia (+18.3%).

• Cash flow from operating activities increased 15.9% year-over-year to ¥1,821 million.

• Total assets at Q2 FY2026 were ¥57,271 million, with net assets rising to ¥42,013 million.

Outlook and guidance

• Full-year FY2026 net sales are forecast at ¥52,000 million (+3.5% YoY), with operating profit projected at ¥3,800 million (+10.7% YoY) and net profit at ¥2,300 million (+6.9% YoY).

• Earnings per share for the year are forecast at ¥63.29.

• Growth is expected to continue in high-value-added automotive and data center products, with recovery anticipated in precision screws for game consoles and ongoing strength in overseas markets.

• The company aims to improve profitability through cost reductions, product mix optimization, and expansion of new products.