Azbil (6845) Q1 2027 earnings summary

Executive summary

• Orders received rose 28.5% year-over-year to ¥115.3B, driven by robust BA and AA business growth and large-scale projects.

• Revenue increased 2.0% year-over-year to ¥63.6B, mainly due to growth in the AA business.

• Business profit declined 30.1% year-over-year to ¥4.96B, impacted by higher investments and increased expenses.

• Profit attributable to owners was flat or up 1.5% year-over-year at ¥5.09B, supported by investment income, foreign exchange gains, and a gain on sale of property, plant, and equipment.

• The company is on track to achieve its full-year financial plan, with first-quarter results within expected ranges.

Financial highlights

• Orders received: ¥115.3B (+28.5% YoY); revenue: ¥63.6B (+2.0% YoY); business profit: ¥4.96B (-30.1% YoY); operating profit: ¥6.7B (-4.8% YoY); profit attributable to owners: ¥5.09B (+1.5% YoY).

• Gross profit margin decreased to 44.0% (from 45.3% YoY); business profit margin fell to 7.8% (from 11.4% YoY).

• Basic earnings per share: 10.07 yen (vs. 9.75 yen YoY).

• Foreign exchange rate fluctuations contributed ¥1.2B to revenue and ¥0.2B to business profit.

• Comprehensive income for the period: ¥6.15B.

Outlook and guidance

• No revision to FY2026 plan; business performance is within expected ranges and on track for first half and full year.

• Full-year revenue forecast remains at ¥315.0B, business profit at ¥48.2B, and profit attributable to owners at ¥35.3B.

• Revenue and profit growth expected as order backlog is converted; robust market conditions continue in BA and AA.

• Dividend forecast for FY2027 is ¥50.00 per share, including a commemorative dividend.

• Geopolitical risks, especially from the Middle East, are being monitored; inflation and cost increases anticipated but outlook for automation business remains positive.