Hochiki (6745) Q1 2027 earnings summary

Executive summary

• Achieved record first-quarter net sales and operating profit, driven by growth in recurring-revenue business and overseas expansion.

• Net sales rose 6.6% year-over-year to ¥23,833 million for the quarter ended June 30, 2026, with operating profit up 41.4% to ¥1,519 million and profit attributable to owners of parent up 47.5% to ¥1,180 million.

• Orders received increased 9.5% year-over-year to ¥37,729 million, driven by strong performance in both domestic refurbishment/maintenance and overseas system sales.

• Profitability improved across most segments, with notable gains in Fire Alarm Systems and Security Systems.

• Overseas sales ratio increased to 29.0% of consolidated net sales, reflecting strong international performance.

Financial highlights

• Consolidated net sales rose 6.6% year-over-year to ¥23,833 million; operating profit up 41.4% to ¥1,519 million.

• Ordinary profit increased 54.4% to ¥1,652 million; profit attributable to owners of parent up 47.5% to ¥1,180 million.

• Gross profit increased to ¥9,312 million from ¥8,110 million year-over-year.

• Basic earnings per share for the quarter were ¥15.83 (post 3-for-1 stock split).

• Operating margin improved to 6.4% from 4.8% in the prior year.

Outlook and guidance

• Full-year forecast for FY ending March 31, 2027: net sales ¥110,000 million (+3.9% YoY), operating profit ¥12,300 million (+1.9%), profit attributable to owners of parent ¥9,000 million (-4.0%), EPS ¥120.64.

• No changes to previously announced earnings forecasts.

• Strong order backlog expected to support future net sales growth.

• Overseas markets anticipated to maintain higher growth rates than domestic, with continued focus on recurring-revenue business.