TOWA (6315) Q2 2026 earnings summary

Executive summary

• Net sales for 1H FY2025 declined 14.4% year-over-year to ¥234.4B, with operating profit down 52.6% to ¥24.9B and net profit down 51.7% to ¥18.4B, but all profit levels exceeded forecasts due to improved product mix.

• Orders rebounded in 2Q FY2025, driven by demand for AI/data centers and memory, after a weak 1Q.

• Profits exceeded initial forecasts in 2Q due to higher sales of original compression equipment and molds.

Financial highlights

• 1H FY2025 net sales: ¥234.4B, down 14.4% YoY, but 2.0% above forecast.

• Operating profit: ¥24.9B, down 52.6% YoY, but 45.8% above forecast.

• Net profit: ¥18.4B, down 51.7% YoY, 54.2% above forecast.

• Comprehensive income for the period was ¥3,912 million, up 162.6% YoY.

• 2Q net sales: ¥153.7B, second-highest quarterly level on record.

Outlook and guidance

• Full-year forecast for FY2025 remains unchanged: net sales of ¥560.0B (+4.7% YoY), operating profit of ¥98.0B (+10.4% YoY), and net profit of ¥68.6B (-15.5% YoY).

• Dividend forecast is ¥20 per share for the second half, unchanged from the previous year.

• Orders for AI/data center and next-gen markets expected to drive growth in 2H FY2025.

• The company notes ongoing uncertainties in customer investment trends and market conditions.