Okuma (6103) investor relations material

Executive summary

• Sales for FY2026 Q1 rose 16.3% year-over-year to ¥51.9 billion, with operating income up 175.1% to ¥4.4 billion and net income up 253.7% to ¥4.98 billion.

• Orders received reached ¥75,263 million, up 38.9% year-over-year.

• Demand for machine tools remained robust globally, especially in aviation, defense, data centers, and semiconductor sectors, with notable recovery in capital investment among medium- and small-sized businesses.

• Profitability improved through cost reduction, production efficiency, and passing on higher costs to sales prices.

• Overseas sales ratio increased to 74.3% from 67.7% year-over-year.

Financial highlights

• Operating income margin improved to 8.5% from 3.6% in the prior year.

• Backlog orders increased 17.7% year-over-year to ¥124.8 billion.

• Americas and Europe saw new orders surge 102.2% and 125.0% respectively, while Asia/Pacific declined 12.5%.

• Lathes and multitasking machines led product growth, with new orders up 56.4% and 61.3% respectively.

• Basic earnings per share: ¥84.52 (up from ¥23.29 year-over-year).

Outlook and guidance

• FY2026 full-year sales forecast revised upward to ¥260.0 billion, operating income to ¥26.0 billion (10.0% margin), and net income to ¥20.0 billion.

• Dividend forecast raised to ¥120 per share, payout ratio 35.2%.

• Orders-received forecast for FY2027 revised upward to ¥276,000 million.

• Assumed exchange rates for FY2026: 1USD = ¥159.0, 1EUR = ¥185.0.