Komori
Earnings6870Fenwal Controls of Japan,Ltd.Electrical Equipment and Precision Instruments

Financial Results Summary for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 [Japanese GAAP] (Consolidated)

For the interim period of the fiscal year ending December 2026, net sales, operating income and ordinary income exceeded the same period of the previous year, while interim net income attributable to owners of the parent fell below the previous-year level due to the recognition of extraordinary losses. The full-year earnings forecasts and dividend forecasts remain unchanged from the previous forecasts.

Worth reading
54Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
9.2
Year-on-year change in revenue (%)
Wording
Conditional
How definitive the wording is.

Results for this period

Interim period (second quarter)1 January 2026–30 June 2026ConsolidatedJapanese GAAP
Net Sales7,120Millions of yenYear on year +9.2%Progress 56.5%
Operating profit905Millions of yenYear on year +12.3%Progress 87.9%
Ordinary income998Millions of yenYear on year +26.1%Progress 90.7%
Net income attributable to owners of the parent548Millions of yenYear on year -39.5%Progress 62.3%

The width of the band at each stage is based on revenue. The narrower it becomes toward the bottom, the smaller the proportion of revenue that remains as profit. The dotted outline is the full-year forecast and the band inside it is the result for this period. The progress rate is the result divided by the forecast.

Net income per share¥97.81
Financial position at period-end
Total assets20,000Millions of yen
of which net assets 15,567 Millions of yenEquity ratio 77.8%vs. prior year-end +1.8pt

塗りつぶした部分が自己資本比率です。総資産のうち、返済のいらない自前の資金がどれだけかを表します。The thin vertical line indicates the level at the end of the previous fiscal year.

Cash inflows and outflows
Operating+1,831
Investment-676
Financials-64
Net change+1,091

Stacked from zero: upward is an increase in cash, downward a decrease (in Millions of yen).The net change represented by the dotted line is the total of three items, calculated from figures provided by the company.

Cash and cash equivalents at end of period5,374 Millions of yen
Segment revenue
SSP segment2,51335.3%+2.8%
Thermal segment1,67823.6%+71.4%
Medical segment5437.6%-21.1%
PWBA segment4846.8%-1.1%
Fire-Pump Division1,89926.7%-1.0%
Segment profit
SSP segment694,63955.6%
Thermal segment293,75823.5%
Medical segment35,8742.9%
PWBA segment66,3365.3%
Fire-Pump Division159,16812.7%
Outlook and shareholder returns
Full-year earnings forecast
Net Sales12,600 Millions of yen (YoY -2.4%)
Operating profit1,030 Millions of yen (YoY -2.5%)
Ordinary income1,100 Millions of yen (YoY -3.9%)
Net income880 Millions of yen (YoY -29.4%)
Annual Dividend Forecast¥76 → ¥78(+2.6%)
Factors Behind Changes in Business Performance

In the SSP segment, stable orders from the core electric power industry, together with detailed sales activities for gas fire-extinguishing systems, contributed to results. In the Thermal segment, benefiting from increased demand in the semiconductor market, orders and sales of hot plates and sensors for semiconductor manufacturing equipment significantly exceeded the levels of the same period of the previous year. Interim net income attributable to owners of the parent decreased because an expense for the provision for losses related to product modifications and an impairment loss on investment securities were recognized as extraordinary losses.

Disclosure regarding the going concern assumption

No applicable matters

Change in accounting policy
基準改正に伴う変更 Noそれ以外の変更 No見積りの変更 No修正再表示 No
Changes in the scope of consolidationNew Number of companies 0 / Company name Not disclosed / Excluded Number of companies 0 / Company name Not disclosed
Breakdown of extraordinary income (loss)Extraordinary income None recorded for the current period / Extraordinary loss Impairment loss on investment securities ¥88,403 thousand, Expense for provision for losses related to product modifications ¥76,346 thousand, Other ¥1,903 thousand
Depreciation and amortization¥152,277 thousand
Orders received and order backlogOrders received 7,353 Millions of yen (YoY +4.0%) / Order backlog Not disclosed
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingWhether applicable No / Subject person None
Issued Shares at Period-End5,893,000 Shares
Treasury Shares at Period-End285,547 Shares
Results for this period
ItemDetails
Fiscal Period ClassificationInterim period (second quarter)
Accounting standardsJapanese GAAP
Consolidated / non-consolidatedConsolidated
Period Covered1 January 2026–30 June 2026
Net Sales7,120 Millions of yen (YoY +9.2%)
Operating profit905 Millions of yen (YoY +12.3%)
Ordinary income998 Millions of yen (YoY +26.1%)
Profit attributable to owners of the parent548 Millions of yen (YoY -39.5%)
Net income per share¥97.81
Equity ratioEnd of the current fiscal period 77.8% / End of previous period 76.0%
Total assets20,000 Millions of yen
Net assets15,567 Millions of yen
Cash flows from operating activities1,831 Millions of yen
Cash flows from investing activities-676 Millions of yen
Cash flows from financing activities-64 Millions of yen
Cash and cash equivalents at end of period5,374 Millions of yen
Full-year earnings forecastNet Sales 12,600 Millions of yen (YoY -2.4%) / Operating profit 1,030 Millions of yen (YoY -2.5%) / Ordinary income 1,100 Millions of yen (YoY -3.9%) / Net income 880 Millions of yen (YoY -29.4%)
Annual Dividend Forecast¥76 → ¥78(+2.6%)
Segment revenueSSP segment 2,513 Millions of yen (YoY +2.8%) / Thermal segment 1,678 Millions of yen (YoY +71.4%) / Medical segment 543 Millions of yen (YoY -21.1%) / PWBA segment 484 Millions of yen (YoY -1.1%) / Fire-Pump Division 1,899 Millions of yen (YoY -1.0%)
Segment profitSSP segment ¥694,639 thousand / Thermal segment ¥293,758 thousand / Medical segment ¥35,874 thousand / PWBA segment ¥66,336 thousand / Fire-Pump Division ¥159,168 thousand
Orders received and order backlogOrders received 7,353 Millions of yen (YoY +4.0%) / Order backlog Not disclosed
Depreciation and amortization¥152,277 thousand
Breakdown of extraordinary income (loss)Extraordinary income None recorded for the current period / Extraordinary loss Impairment loss on investment securities ¥88,403 thousand, Expense for provision for losses related to product modifications ¥76,346 thousand, Other ¥1,903 thousand
Disclosure regarding the going concern assumptionNo applicable matters
Change in accounting policyChanges due to revisions to standards No / Other changes No / Change in accounting estimate No / Restatement No
Changes in the scope of consolidationNew Number of companies 0 / Company name Not disclosed / Excluded Number of companies 0 / Company name Not disclosed
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingWhether applicable No / Subject person None
Issued Shares at Period-End5,893,000 Shares
Treasury Shares at Period-End285,547 Shares
Factors Behind Changes in Business PerformanceIn the SSP segment, stable orders from the core electric power industry, together with detailed sales activities for gas fire-extinguishing systems, contributed to results. In the Thermal segment, benefiting from increased demand in the semiconductor market, orders and sales of hot plates and sensors for semiconductor manufacturing equipment significantly exceeded the levels of the same period of the previous year. Interim net income attributable to owners of the parent decreased because an expense for the provision for losses related to product modifications and an impairment loss on investment securities were recognized as extraordinary losses.
Items this document does not state (7)
Operating MarginRevision to Earnings ForecastPayout ratioShareholder Return PolicyRegional salesImpairment lossMaterial subsequent events

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In the SSP segment, stable orders from the core electric power industry and sales activities for gas fire-extinguishing systems contributed to higher revenue. In the Thermal segment, orders and sales of hot plates and sensors increased as demand in the semiconductor market grew. The decrease in interim net income attributable to owners of the parent was due to the recognition of an impairment loss on investment securities and an expense for the provision for losses related to product modifications as extraordinary losses.

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Financial Results Summary for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 [Japanese GAAP] (Consolidated) | Fenwal Controls of Japan,Ltd. (6870) timely disclosure | Komori