Hirose Electric (6806) Q1 2026 earnings summary

Executive summary

• Sales and operating profit increased year-over-year and quarter-over-quarter across all market segments, with industrial segment sales reaching a record high due to strong Factory Automation and AI-related demand.

• Net sales rose 26.8% year-over-year to JPY 62.08 billion, operating profit increased 35.7% to JPY 13.34 billion, and the operating profit ratio improved to 21.5%.

• Orders received totaled JPY 71.06 billion, up 36.6% from the same period last year.

• A tax audit at a major subsidiary led to a recognized income tax expense, with dispute resolution procedures under consideration.

Financial highlights

• Sales: JPY 62.08 billion (+26.8% YoY, +13.5% QoQ); operating profit: JPY 13.34 billion (+35.6% YoY, +27.1% QoQ); operating profit ratio: 21.5% (+1.4pt YoY).

• Net profit: JPY 7.33 billion (+1.4% YoY); net profit margin: 11.8% (-3.0pt YoY).

• Gross profit for Q1 FY2026 was JPY 25.99 billion, up from JPY 20.76 billion YoY.

• Earnings per share: 224.03 yen.

• Cash and cash equivalents rose by JPY 22.97 billion to JPY 110.30 billion at quarter-end.

Outlook and guidance

• Full-year sales forecast revised upward to JPY 250 billion (+18.3% YoY), with operating profit forecast at JPY 50 billion (+16.3% YoY) and net profit at JPY 35 billion (+5.6% YoY).

• Second quarter revenue forecast raised to JPY 125 billion (+22.5% YoY), with operating profit at JPY 25.5 billion.

• Dividend per share forecast: 520 yen.

• Upward revision driven by industrial market strength, robust segment growth, and AI/semiconductor demand.