Brother Industries (6448) Q1 2027 earnings summary

Executive summary

• Achieved record-high sales revenue and profit at all levels for Q1 FY2026, with revenue rising 23.0% YoY to ¥253,344 million and operating profit up 250.1% to ¥54,649 million.

• Net income attributable to owners reached ¥49,921 million, up 325.8% YoY, including gains from discontinued operations and asset sales.

• Profitability was boosted by a refund of most U.S. additional tariffs and gains from the sale of XING shares.

• Comprehensive income surged 451.1% YoY to ¥61,988 million, reflecting strong operational and financial performance.

• The Network & Contents Business was classified as a discontinued operation from Q3 FY2025, and all continuing operations metrics exclude this segment.

Financial highlights

• Q1 FY2026 sales revenue: ¥253.3 billion, up 23.0% YoY; operating profit: ¥54.6 billion, up 250.1% YoY; net income: ¥49.9 billion, up 325.8% YoY.

• Gross profit increased to ¥132,277 million, while SG&A expenses rose to ¥77,540 million.

• Basic earnings per share for the quarter jumped from ¥45.98 to ¥201.34 YoY.

• Cash and cash equivalents at quarter-end increased to ¥234,820 million from ¥197,674 million at the previous fiscal year-end.

• Net cash provided by operating activities was ¥46,191 million, up from ¥7,445 million YoY.

Outlook and guidance

• FY2026 sales revenue forecast revised to ¥980 billion, up 7.7% from previous forecast; FY2027 revenue forecast at ¥980,000 million, up 9.7% from FY2026.

• Business segment profit forecast raised to ¥90 billion, up 5.9%; operating profit for FY2027 expected to rise 15.6% to ¥90,000 million.

• Net income forecast increased to ¥77.5 billion, up 7.6%; FY2027 net profit projected at ¥77,500 million, a 14.6% increase YoY.

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

• Forecasts incorporate updated FX rates, limited Middle East impact, and higher parts/materials costs.