Koito Manufacturing (7276) Q1 2027 earnings summary

Executive summary

• Revenue and operating profit increased year-over-year in Q1 2026, driven by yen depreciation, new orders in Japan, the Americas, and Asia, and higher sales volumes, offsetting declines in China and Europe.

• Operating profit rose due to increased sales volumes, ongoing efficiency improvements, and gains on sale of cross-shareholdings.

• Comprehensive income more than doubled year-over-year to ¥19.7 billion.

Financial highlights

• Consolidated Q1 revenue: ¥2,408 billion, up ¥211 billion (110%) year-over-year.

• Operating profit: ¥165 billion, up ¥46 billion (139%) year-over-year; margin improved from 5.4% to 6.9%.

• Net income: ¥146 billion, up ¥45 billion (145%) year-over-year.

• Gross profit: ¥307 billion, up ¥39 billion (115%) year-over-year.

• Special gains included ¥25 billion from sale of investment securities.

• Net income per share increased to ¥55.77 from ¥35.72 year-over-year.

• Cash and cash equivalents at period end decreased to ¥116.0 billion from ¥146.8 billion a year earlier.

• Dividend forecast for FY2026 is ¥58.00 per share, up from ¥56.00 in FY2025.

Outlook and guidance

• Despite Q1 outperformance, full-year guidance remains unchanged or only slightly higher due to ongoing global uncertainties, especially in the Middle East.

• Full-year FY2026 net sales forecast at ¥933.0 billion (down 1.5% year-over-year), with operating profit expected to rise 16.6% to ¥60.0 billion.

• Profit attributable to owners of parent projected to increase 138.8% to ¥39.5 billion.