Eiwa (9857) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FY2026 was ¥9,565 million, up 3.2% year-over-year, driven by strong demand in shipbuilding, chemical, and environmental equipment sectors, despite declines in electric power and other sectors.

• Operating profit decreased by 14.4% to ¥423 million, mainly due to changes in product mix and increased SG&A expenses from investments in human resources.

• Net income attributable to shareholders fell 15.3% to ¥296 million, reflecting lower gross profit and higher costs.

• The company continues to focus on digital transformation, green transformation, and infrastructure solutions as part of its mid-term strategy.

Financial highlights

• Q1 revenue: ¥9,565 million (+3.2% YoY); operating profit: ¥423 million (−14.4% YoY); net income: ¥296 million (−15.3% YoY).

• Gross profit was ¥1,661 million, down 0.9% year-over-year, due to a shift in sales composition impacting margins.

• SG&A expenses rose with enhanced investment in employee development and engagement, leading to a decline in operating and ordinary profit.

• EPS for Q1 was ¥46.84, down from ¥55.32 in the prior year.

• Comprehensive income for the quarter was ¥334 million, a 5.7% decrease year-over-year.

Outlook and guidance

• Full-year revenue forecast: ¥48,500 million (+2.9% YoY); operating profit: ¥2,860 million (+2.6% YoY); net income: ¥1,960 million (+0.3% YoY).

• Interim dividend forecast remains at ¥40 per share, with a full-year total of ¥80 per share.

• ROE target for FY2027 is set at 11% or higher.