Dowa Holdings (5714) Q1 2027 earnings summary

Executive summary

• FY2026 1Q net sales rose 58.2% year-over-year to ¥253.3B, operating profit jumped 281% to ¥24.7B, and ordinary profit increased 278% to ¥32.5B, led by the Nonferrous Metals segment and favorable metal prices and FX rates.

• Profit attributable to owners of parent increased 266.4% year-over-year to ¥23.4B, and comprehensive income surged 778.2% to ¥26.9B.

• New energy-related businesses outperformed expectations, while other demand trends were stable.

Financial highlights

• Gross profit for the quarter was ¥39.5B, up from ¥19.6B YoY; basic EPS was ¥396.51, compared to ¥107.50 prior year.

• Total assets increased to ¥801.3B as of June 30, 2026, with net assets at ¥475.9B and an equity-to-asset ratio of 57.5%.

• Exchange rate averaged 159.5 yen/USD in 1Q, up from 144.6 yen/USD YoY; metal prices (copper, zinc, indium) all increased YoY.

Outlook and guidance

• Full-year FY2026 forecast unchanged: net sales ¥941.0B, operating profit ¥53.0B, ordinary profit ¥80.0B, profit attributable to owners ¥57.0B (down 8.7% YoY); full-year basic EPS forecast is ¥963.68.

• Outlook uncertain due to declining precious metal prices, weaker automotive demand, and rising material costs.