Shimano Inc. reported mixed results for the first half of 2026, with its bicycle component business continuing to face profitability pressure despite progress in market inventory adjustments. Meanwhile, strong growth in its fishing tackle division helped offset weaker bicycle performance and supported the company’s overall financial results.
For the six months ended June 2026, Shimano’s consolidated sales increased 4.1% year-on-year to ¥247.06 billion, while operating profit declined 3.1% to ¥27.25 billion. Net profit attributable to shareholders surged 605.5% to ¥27.95 billion, mainly due to foreign exchange gains and gains from the sale of listed equity holdings rather than improved operating performance.
The company’s Bicycle Components segment, its core business, recorded sales of ¥181.38 billion, nearly unchanged from the previous year, while operating profit declined 15.1% to ¥20.06 billion.
Shimano said bicycle market inventory adjustments have progressed as expected, with retail sales of complete bicycles remaining stable in most regions. However, the company noted continued challenges in North America due to higher bicycle prices affected by tariffs, while inventory levels in Europe and Asia-Pacific/Latin America remained somewhat elevated. In Japan, demand was impacted by inflation and weaker sales of higher-priced bicycles.
In contrast, Shimano’s Fishing Tackle segment delivered strong growth, with sales increasing 17.4% to ¥65.47 billion and operating profit rising 59.8% to ¥7.18 billion. Demand remained strong in North America, Europe, Asia, and Australia, supported by new products including the VANQUISH CE and STELLA SW fishing reels.
Based on progress in inventory normalization and foreign exchange benefits, Shimano raised its full-year 2026 sales forecast from ¥467 billion to ¥491 billion. The company also increased its ordinary profit forecast from ¥53.3 billion to ¥56 billion and raised its net profit forecast from ¥42 billion to ¥43 billion, while maintaining its operating profit forecast at ¥47 billion.
Shimano also announced that it will adjust prices for certain bicycle components from August 2026 to partially offset rising raw material and supplier costs. The company expects the price adjustment to recover approximately ¥2 billion of additional costs. Japanese media have reported that bicycle component prices in Japan may increase by around 3%.
While Shimano’s overall financial outlook has improved, its bicycle component business remains under pressure as the market continues to work through inventory adjustments, higher costs, and changing consumer demand.
