Brother Industries (6448) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 sales revenue was ¥213.1 billion, down 0.8% year-over-year, with declines in profit due to negative FX effects and increased SG&A and sales promotion expenses.

• Operating profit dropped 26.8% to ¥16.0 billion, and net income fell 29.0% to ¥11.7 billion.

• Comprehensive income decreased 77.0% to ¥11,248 million.

Financial highlights

• Sales revenue: ¥213.1 billion (-0.8% YoY); local currency growth offset by FX headwinds.

• Operating profit: ¥16.0 billion (-26.8% YoY); operating margin at 7.5%.

• Net income: ¥11.7 billion (-29.0% YoY); business segment profit margin at 8.9%.

• Gross profit was ¥91,027 million, down from ¥96,790 million year-over-year.

• Basic earnings per share for the quarter were ¥45.98, down from ¥64.62 a year earlier.

Outlook and guidance

• FY2025 forecast remains unchanged, with sales revenue projected at ¥875.0 billion and net income at ¥55.0 billion.

• Operating profit for the full year is expected to rise 4.5% to ¥73,000 million.

• Basic earnings per share forecast is ¥223.64, up from ¥214.27 in the previous year.

• Dividend per share is projected to remain at ¥100.00.

• Additional U.S. tariffs (~¥16 billion impact) expected to be offset by price increases, cost controls, and production adjustments.

• Exchange rate assumptions: 1 USD = ¥140, 1 EUR = ¥160.