Daiseki (9793) Q1 2026 earnings summary

Executive summary

• Achieved record consolidated net sales of ¥17,912mn for Q1, up 7.2% year-over-year, driven by strong industrial wastewater and soil remediation projects.

• Gross profit reached a record high, but profits were below forecasts due to increased raw material and labor costs and mixed segment performance.

• Parent company and Daiseki Eco.Solution posted record or above-forecast results, while Daiseki MCR and System Kikou faced profit shortfalls due to market and project timing factors.

• Purchased 800,000 treasury shares for ¥2,947mn and launched ESG initiatives, including ammonia recovery demonstration tests.

Financial highlights

• Consolidated net sales: ¥17,912mn, up 7.2% year-over-year and slightly above forecast.

• Gross profit: ¥5,964mn, up 1.7% year-over-year but 3.7% below forecast.

• Operating profit: ¥3,830mn, down 1.9% year-over-year and 6.5% below forecast.

• Profit attributable to owners: ¥2,441mn, down 9.1% year-over-year and 2.3% below forecast.

• Basic earnings per share: ¥51.02, down from ¥55.55 year-over-year.

Outlook and guidance

• Full-year consolidated net sales forecast at ¥70,000mn, with 1Q progress at 25.5%.

• Operating profit projected at ¥15,700mn and profit attributable to owners at ¥9,900mn for the full year.

• No revisions to previously announced financial forecasts; annual dividend forecast is ¥72.00 per share.

• Aims for ROE of 12.0% by FY February 2027 and 15.0% by FY February 2031.

• 90% of System Kikou’s full-year order target already anticipated, with recovery expected from 2Q.