Osaka Titanium Technologies revises full-year outlook, strong Q2 profits offset sales miss

Osaka Titanium Technologies reported second-quarter net sales of JPY 26,924 million, a 3.6% increase over its previously announced forecast. Operating profit surged by 61.0% to JPY 4,026 million, while ordinary profit increased by 110.0% to JPY 4,200 million, both exceeding initial expectations due to softened maritime transport prices, deferred costs, and a weaker yen. Net profit also rose by 93.5% to JPY 2,515 million, resulting in JPY 68.35 earnings per share.

For the full financial year ending March 31, 2026, the company revised its net sales forecast downward by 5.8% to JPY 49,000 million from JPY 52,000 million, primarily due to anticipated inventory adjustments in the civil aircraft supply chain. However, operating profit is now projected to increase by 11.1% to JPY 5,000 million, ordinary profit by 14.3% to JPY 4,800 million, and net profit by 10.0% to JPY 2,200 million, reflecting the strong first-half performance.

The Titanium Business saw a 4.4% year-on-year increase in net sales to JPY 23,582 million for the six months ended September 30, 2025, while the High-Performance Materials Business experienced an 8.2% decline in net sales to JPY 3,342 million. Overall total assets increased to JPY 105,119 million by September 30, 2025, from JPY 100,925 million at March 31, 2025, driven by increases in trade accounts receivable and fixed assets.