DAIKO XTECH (8023) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FY2026 was ¥9,085 million, down 6.8% year-over-year, with an operating loss of ¥151 million and net income attributable to parent of ¥124 million, reversing last year's profit.

• Orders and order backlog increased by 5.1% and 7.5% year-over-year, driven by modernization projects and growth in stock business, with backlog up 33.8%.

• Operating loss was recorded due to a decrease in high-margin projects, increased SG&A from human capital investments, and one-time rebranding costs.

• The company rebranded as DAIKO XTECH and launched a new mid-term plan focused on business transformation and value-added solutions.

Financial highlights

• Revenue: ¥9,085 million (down 6.8% YoY); operating loss: ¥151 million (vs. ¥288 million profit YoY); net income: ¥124 million (vs. ¥324 million YoY).

• Gross profit: ¥2,078 million (down 10.8% YoY), gross margin 22.9%.

• Ordinary loss: ¥140 million (vs. ¥326 million profit YoY).

• Comprehensive loss for the quarter was ¥15 million.

Outlook and guidance

• Full-year revenue target: ¥43,000 million; Q1 progress at 21.1%.

• Full-year gross profit target: ¥11,400 million; Q1 progress at 18.2%.

• Full-year guidance remains unchanged: revenue ¥43,000 million (+0.7%), operating profit ¥2,450 million (+1.6%), net profit ¥1,650 million (−2.0%).

• Orders and backlog are progressing steadily, but revenue and gross profit are behind plan due to flow business decline.

• Focus remains on expanding high-margin software solutions and stock business.