At its FY2026 Q2 earnings briefing, Japan M.D.M. announced a substantial downward revision to its interim results, forecasting a full-year operating loss of ¥1.5 billion and no year-end dividend. The decline in U.S. knee joint sales and delays in restoring trust in Japan were cited as factors.
Interim revenue was ¥10.437 billion, down 10.1% year on year, while the company posted an operating loss of ¥1.036 billion, a substantial deterioration from the operating profit recorded in the same period of the previous year. Interim net income was affected by a ¥629 million income tax adjustment associated with the reversal of deferred tax assets at a U.S. subsidiary.
The full-year forecasts were revised downward to revenue of ¥21.7 billion, an operating loss of ¥1.5 billion, an ordinary loss of ¥1.75 billion and a net loss of ¥2.5 billion. An operating loss of ¥464 million is expected in the second half. The assumed exchange rate is ¥159 per US dollar.
Revenue in Japan was ¥5.475 billion, down 13.9% year on year, with declines across all categories: artificial joints, osteosynthesis materials and spinal fixation devices. In the United States, artificial knee joint sales fell 23%, while artificial hip joint sales rose 8.0%. The overall decline in knee joint revenue was pronounced, highlighting issues with competitiveness.
As part of its structural reforms, the company is proceeding with a reduction of 51 ODEV employees, the transfer of domestic manufacturing to SAICO2 and SKU reductions, as well as stronger financial controls. It aims to restore core business profitability and its financial base by the fiscal year ending March 2028 through fixed-cost reductions and inventory optimisation in the second half. The growth strategy is centred on strengthening its fracture business in Japan and expanding sales of the Trivicta Hip Stem in the United States. The company plans to launch nutritional supplements in spring 2027.