TOKAI (9729) Q2 2026 earnings summary

Executive summary

• Consolidated net sales increased for the fifth consecutive year, reaching ¥79,026 million for the six months ended September 30, 2025, up 8.7% year-over-year, with operating profit up 21.1% to ¥4,436 million and ordinary profit up 20.0% to ¥4,699 million.

• Profit attributable to owners of parent was ¥3,048 million, nearly flat year-over-year, while comprehensive income surged 71.6% to ¥3,954 million.

• Growth was driven by strong performance in core rental, cleaning equipment manufacturing, and dispensing pharmacy businesses, as well as contributions from newly consolidated subsidiaries.

Financial highlights

• Gross profit increased to ¥19,023 million from ¥16,990 million year-over-year, with selling, general and administrative expenses rising to ¥14,587 million.

• Basic earnings per share for the period was ¥90.13, up from ¥88.82 in the prior year.

• Total assets as of September 30, 2025, were ¥116,992 million, with net assets at ¥88,872 million and an equity-to-asset ratio of 75.4%.

• Equity ratio improved to 75.4% from 74.8% sequentially.

Outlook and guidance

• Full-year forecast for the fiscal year ending March 31, 2026, projects net sales of ¥157,976 million (up 5.6% year-over-year), operating profit of ¥8,216 million, and profit attributable to owners of parent of ¥5,499 million (up 16.2%).

• Basic earnings per share for the full year is forecast at ¥162.69.

• Aims for a cumulative total payout ratio of 70% or higher under the three-year medium-term management plan (FY3/26–FY3/28).

• Forecasts include commemorative dividends for the 70th anniversary and continued stable dividends.