ShinMaywa Industries (7224) investor relations material

Executive summary

• Achieved record-high first quarter net sales of ¥62,708 million (+8.7% year-over-year) and significant profit growth, despite a 1.5 billion yen negative impact from Middle East procurement issues.

• Operating profit rose 43.6% to ¥2,049 million, ordinary profit increased 82.5% to ¥2,738 million, and profit attributable to owners of parent surged 107.5% to ¥1,876 million.

• Order backlog increased 11.5% year-over-year to ¥372,245 million, though orders received declined 1.5%.

• Comprehensive income rose to ¥1,440 million from ¥201 million a year earlier.

Financial highlights

• 1Q net sales: ¥62,708 million (+8.7% year-over-year), highest on record for the fourth consecutive year.

• Operating profit: ¥2,049 million (+43.6%); ordinary profit: ¥2,738 million (+82.5%); profit attributable to owners of parent: ¥1,876 million (+107.5%).

• Gross profit improved to ¥10,089 million from ¥8,941 million year-over-year.

• Basic earnings per share rose to ¥28.38 from ¥13.69 year-over-year.

• Equity-to-asset ratio: 43.3% (up from 42.2% at prior year-end).

Outlook and guidance

• FY2026 forecast: Orders received ¥330,000 million (+0.9%), net sales ¥310,000 million (+8.8%), operating profit ¥17,000 million (+4.1%).

• Net sales forecast revised down to ¥310,000 million (from ¥312,400 million); operating profit and profit attributable to owners of parent unchanged at ¥17,000 million and ¥10,500 million.

• Annual dividend per share forecast at ¥58 (DOE 3.0%), up 2 yen year-over-year and unchanged from previous guidance.

• Assumes Middle East situation will subside by September; each 1 yen depreciation in USD/JPY increases operating profit by ~60 million yen; assumed exchange rate for August onwards is ¥150/USD.