santec Holdings (6777) Q2 2026 earnings summary

Executive summary

• Revenue increased by 6.5% year-over-year to ¥12,778 million for the interim period, driven by strong sales of optical monitors and connectorized fiber inspection equipment.

• Operating profit rose by 6.6% to ¥4,119 million, and net profit attributable to shareholders increased 14.6% to ¥3,058 million, aided by a lower effective tax rate.

• Optical components segment saw significant recovery in demand, leading to higher sales and profits, while measurement instruments for communications performed well but industrial applications remained sluggish.

• The company maintained its full-year guidance, expecting revenue of ¥26,000 million and net profit of ¥4,800 million.

• Inventory adjustments in the optical components business have concluded, leading to a demand rebound.

Financial highlights

• Interim revenue was ¥12,778 million, up ¥781 million (+6.5%) year-over-year.

• Operating profit reached ¥4,119 million, up ¥254 million (+6.6%) year-over-year.

• Ordinary profit was ¥4,249 million (+9.0%), and net profit was ¥3,058 million (+14.6%) year-over-year.

• Gross profit for the period was ¥7,373.9 million, with a gross margin of 57.7%, up from 57.0% a year earlier.

• EPS for the half-year was ¥260.03, up from ¥226.97 year-over-year.

Outlook and guidance

• Full-year revenue forecast for March 2026 is ¥26,000 million, up 8.2% from the previous year.

• Operating profit is expected to be ¥7,400 million, slightly down by 0.4% year-over-year.

• Net profit is forecast at ¥4,800 million, down 5.3% year-over-year.

• Annual dividend forecast is ¥210 per share.

• No changes have been made to previously announced guidance.