DKK Co (6706) Q1 2027 earnings summary

Executive summary

• Net sales rose 25.1% year-over-year to 7,483 million yen, driven by strong order growth and segment recovery, with all income categories improving.

• Net income attributable to shareholders surged to 1,307 million yen, supported by extraordinary gains from asset sales.

• Operating loss narrowed significantly to 4 million yen from 433 million yen a year earlier, reflecting improved cost management and higher gross profit.

• Growth was driven by strong demand in the Telecommunication segment and a recovery in capital investment in the Radio Frequency segment.

• Orders received increased 33.6% year-over-year to 11,388 million yen, with a 24.2% rise in order backlog.

Financial highlights

• Net sales: 7,483 million yen, up 1,500 million yen (25.1%) year-over-year.

• Gross profit: 1,485 million yen, up 29.8% year-over-year.

• Operating income: -4 million yen, improved by 428 million yen year-over-year.

• Ordinary income: 230 million yen, up 641 million yen year-over-year, mainly due to gains on investment partnerships.

• Net income per share was 149.93 yen, compared to a loss per share of 23.34 yen a year earlier.

Outlook and guidance

• Full-year forecast remains unchanged, with net sales projected at 36,500 million yen and operating income at 1,650 million yen.

• Net income attributable to shareholders forecast to rise 20.8% to 2,300 million yen, with net income per share guidance at 263.81 yen.

• Revenue and profit increases expected, driven by strong Telecommunication segment and recovery in Radio Frequency segment.

• Dividend forecast for FY2027/3 is 105 yen per share, up 5 yen year-over-year.

• No changes to previously announced forecasts.