Hioki EE (6866) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 rose 16.0% year-over-year to ¥11,386 million, with operating profit up 27.8% and net profit attributable to owners up 41.1%.

• Growth was driven by strong demand in Component, Energy, and Battery markets, and a favorable yen depreciation.

• Overseas sales increased 19.1% year-over-year, now comprising 61.4% of total sales.

• Strategic initiatives included new product launches, automation in production, and expansion in the U.S. market.

• Recognized for ESG efforts, receiving a Bronze Medal from EcoVadis and D&I Award certification.

Financial highlights

• Q1 2026 net sales: ¥11,386 million (+16.0% YoY); operating profit: ¥2,306 million (+27.8% YoY); ordinary profit: ¥2,357 million (+38.9% YoY); net profit: ¥1,653 million (+41.1% YoY).

• Gross profit margin improved, with gross profit at ¥5,939 million (up from ¥5,041 million YoY).

• Comprehensive income for Q1 2026 was ¥1,671 million, up 71.0% YoY.

• Basic EPS for Q1 2026 was ¥122.59, up from ¥86.54 YoY.

• Overseas sales ratio reached 61.4%, with notable growth in China (+24.2%) and South Korea (+31.2%).

Outlook and guidance

• FY2026 net sales forecast: ¥43,000 million (+6.1% YoY); operating profit: ¥7,680 million (+13.1% YoY); net profit: ¥6,000 million (+9.9% YoY).

• No changes to previously announced earnings forecasts; business environment remains highly uncertain due to geopolitical risks and inflation.

• Focus on expanding overseas sales, targeting a 75% overseas sales ratio, and strengthening production and inventory management.