Kaga Electronics Co (8154) Q1 2026 earnings summary

Executive summary

• Q1 FY2026/3 net sales rose 7.3% year-over-year to ¥138.1 billion, with operating income up 16.8% to ¥6.5 billion and net income up 11.8% to ¥4.6 billion, marking a strong start to the Medium-Term Management Plan 2027.

• Growth was driven by strong EMS business in medical and industrial sectors, robust PC and amusement equipment sales.

• The acquisition of Kyoei Sangyo was completed, making it a consolidated subsidiary and prompting an upward revision of full-year forecasts.

Financial highlights

• Net sales: ¥138.1 billion (+7.3% YoY); operating income: ¥6.5 billion (+16.8% YoY); net income: ¥4.6 billion (+11.8% YoY).

• Gross profit margin improved to 13.4% from 13.2% YoY; gross profit increased 8.6% YoY to ¥18.44 billion.

• EPS for Q1 was ¥87.80 (post stock split adjustment), up from ¥78.56 YoY.

• Exchange rates negatively impacted net sales by ¥3.1 billion and operating income by ¥66 million; comprehensive income fell to ¥2.98 billion due to FX losses.

Outlook and guidance

• Full-year net sales forecast revised up to ¥574.0 billion (+8.3% YoY), operating income to ¥24.0 billion (+4.3% vs previous), and net income to ¥24.2 billion (+46.7% YoY), reflecting Kyoei Sangyo consolidation and a ¥7.2 billion gain on bargain purchase.

• EPS forecast raised to ¥488.45, reflecting planned treasury share acquisition and cancellation.

• Annual dividend forecast raised to ¥120 per share (post stock split), including ¥10 in extraordinary dividends.

• ROE expected to rise to 14.6% from 10.8% YoY.