Harmonic Drive Systems (6324) Q1 2026 earnings summary

Executive summary

• Net sales for the three months ended June 30, 2025, rose 3.8% year-over-year to ¥13,496 million, but the period ended with a net loss attributable to owners of parent of ¥283 million compared to a ¥38 million loss a year earlier.

• Operating profit turned negative at ¥238 million loss, down from ¥122 million profit in the prior year period.

• Comprehensive income swung to a loss of ¥1,068 million from a positive ¥2,002 million a year ago, mainly due to negative foreign currency translation adjustments.

Financial highlights

• Gross profit decreased to ¥3,828 million from ¥3,409 million year-over-year, while selling, general and administrative expenses increased to ¥3,706 million.

• Ordinary profit was a loss of ¥134 million, compared to a profit of ¥131 million in the same quarter last year.

• Basic earnings per share was negative at ¥(2.98), compared to ¥(0.40) in the prior year period.

• Total assets decreased to ¥107,843 million as of June 30, 2025, from ¥113,622 million at March 31, 2025.

• Capital adequacy ratio was 70.6% as of June 30, 2025, up from 69.5% at the previous fiscal year-end.

Outlook and guidance

• Full-year net sales forecast for fiscal year ending March 31, 2026, is ¥57,000 million, up 2.4% year-over-year.

• Full-year operating profit is projected at ¥1,500 million, with profit attributable to owners of parent at ¥1,300 million, a 62.6% decrease year-over-year.

• Basic earnings per share for the full year is forecast at ¥13.73.

• Dividend forecast for the year is ¥20 per share, unchanged from the previous year.