Noritsu Koki announced on the 14th that second quarter revenue rose 47.8% and operating profit rose 64.7% from a year earlier, far above its February forecast. The beat was driven by audio equipment; the full-year outlook was unchanged.
For the second quarter (interim) of fiscal 2026, consolidated results compared with the previous forecast showed revenue up ¥4,095 million (+5.2%), operating profit up ¥6,192 million (+51.2%), pre-tax profit up ¥7,076 million (+62.1%), and profit attributable to owners of the parent up ¥4,604 million (+59.0%). Year on year, revenue rose 47.8%, operating profit rose 64.7%, and interim profit rose 70.9%. Basic earnings per share for the interim period was ¥116.36, above the forecast of ¥72.63 and the prior-year ¥68.17 (adjusted for the stock split).
| Item | Previous forecast | Actual | Change | Prior year |
|---|---|---|---|---|
| Revenue (¥ million) | 78,400 | 82,495 | +5.2% | 55,811 |
| Operating profit (¥ million) | 12,100 | 18,292 | +51.2% | 11,104 |
| Pre-tax profit (¥ million) | 11,400 | 18,476 | +62.1% | 10,653 |
| Profit attributable to owners (¥ million) | 7,800 | 12,404 | +59.0% | 7,257 |
The interim profit upside reflected operating profit growth, helped by improved gross margin and foreign exchange gains. A sharp improvement in profitability became clear.
The company attributed the variance mainly to three factors: strong sales at AlphaTheta in the manufacturing (audio equipment) segment, a U.S. tariff refund at JLab, and a weaker yen than assumed. AlphaTheta saw robust demand for DJ equipment in Europe and the U.S., with both sales volume and unit prices exceeding the forecast. The JLab U.S. tariff refund was a one-time boost to profit from refunds of previously paid tariffs, and it significantly lifted pre-tax profit, including non-operating income. The yen's depreciation also increased yen-denominated revenue and had a positive effect on profit margins.
In particular, the JLab U.S. tariff refund is a one-time factor, so investors need to assess earnings on a normalized basis. Meanwhile, AlphaTheta's growth points to structural demand expansion, and strong audio equipment sales were the main driver of the interim results.
Despite the sharp interim beat, the company said it will leave its full-year consolidated forecast for fiscal 2026 unchanged from the February 13 announcement, citing uncertainty in the second half. The decision to keep the forecast unchanged may reflect caution, even though interim profit is already approaching the full-year forecast. The second half carries many uncertainties, including U.S. tariff policy, foreign exchange rates, and concerns about slowing consumer spending in Europe and the U.S.
Investor attention will focus on whether AlphaTheta's sales momentum continues into the second half, on the underlying earnings power excluding the one-time JLab tariff refund, and on whether the company revises its full-year forecast upward. The disclosure's message of full-year forecast unchanged may limit share price reaction, but the interim results exceeded market consensus.
Analyst take
The sharp interim beat is positive, but it was significantly inflated by the one-time JLab U.S. tariff refund and yen weakness. The unchanged full-year forecast may be seen as conservative, but investors need to assess AlphaTheta's sales sustainability and second-half currency and tariff developments. Separating one-time gains is key for investment decisions.
