Buffalo (6676) Q1 2027 earnings summary

Executive summary

• Revenue and profit for continuing operations increased due to structural reforms and higher sales prices, maintaining strong profitability, while total consolidated revenue and profit declined year-over-year, impacted by the end of the Airdog exclusive sales contract.

• Cost reduction initiatives leveraging proprietary engineering cycles contributed to improved profitability.

• Net sales for the quarter ended June 30, 2026, were ¥26,292 million, down 16.1% year-over-year.

• Operating profit for continuing operations nearly doubled year-over-year (+93.5%) to ¥2.7 billion, but overall operating profit decreased 3.4% to ¥2,869 million.

• Net income attributable to shareholders declined 11.5% year-over-year to ¥2.0 billion.

Financial highlights

• Total consolidated revenue decreased 16.1% year-over-year due to the end of the Airdog exclusive sales contract, but continuing operations saw a 1.6% revenue increase.

• Gross profit for the quarter was ¥6,572 million, compared to ¥9,148 million a year earlier.

• Basic earnings per share for the quarter were ¥86.13, up from ¥82.58 after a 2-for-1 stock split.

• Net assets as of June 30, 2026, were ¥44,248 million, with an equity-to-asset ratio of 61.6%.

• Total assets increased slightly to ¥71,801 million from ¥71,444 million at the previous fiscal year-end.

Outlook and guidance

• Full-year consolidated forecasts remain unchanged due to market uncertainties, despite strong Q1 performance.

• Full-year net sales forecast for fiscal year ending March 31, 2027, is ¥110,000 million, a 6.2% decrease year-over-year.

• Operating profit is projected at ¥6,200 million, down 32.8% year-over-year.

• Profit attributable to owners of parent is forecast at ¥4,500 million, a 44.2% decline year-over-year.

• Yen depreciation is expected to continue, posing a headwind for profits; procurement costs for semiconductors and key components are projected to rise.