Konica Minolta (4902) Q1 2027 earnings summary

Executive summary

• Revenue increased 3% year-over-year to ¥258.5 billion, driven by FX gains, yen depreciation, and growth in Digital Workplace, Industry, and Imaging Solutions segments.

• Gross profit rose 13% year-over-year to ¥124.0 billion, with a notable improvement in gross profit ratio to 48.0% and a ¥7.4 billion U.S. tariff refund.

• Business contribution profit grew 26% year-over-year, supported by U.S. tariff refunds and FX effects, while operating profit declined 4% due to higher SG&A, restructuring costs, and absence of prior year one-time gains.

• Net profit attributable to owners rose 6.8% year-over-year to ¥7.8 billion.

• Free cash flow turned positive at ¥17.5 billion, a significant improvement from negative ¥18.8 billion last year.

Financial highlights

• Revenue: ¥258.5B (+3% YoY); Gross profit: ¥124.0B (+13% YoY); Gross margin: 48.0% (+4.1pt YoY).

• Business contribution profit: ¥11.6B (+26% YoY); Operating profit: ¥9.6B (-4% YoY); Net profit: ¥7.8B (+6.8% YoY); EPS: ¥15.74.

• Free cash flow: ¥17.5B (vs. -¥18.8B YoY); CAPEX: ¥8.8B; R&D: ¥13.5B.

• Equity ratio improved to 44.8%; total assets at ¥1,229.9B.

• Comprehensive income surged to ¥17.9B, up 313.4% YoY, mainly from FX translation gains.

Outlook and guidance

• FY2026 guidance unchanged: Revenue ¥1,105.0B, operating profit ¥50.0B–¥56.0B, profit attributable to owners ¥28.5B.

• Tariff refunds and Tempus AI share gains to offset Middle East risks and rising material costs.

• Dividend forecast raised to ¥18/share (from ¥12/share prior year); FY27 dividend forecast unchanged at ¥18/share.

• Exchange rate assumptions: ¥150/USD and ¥180/EUR for the remainder of the year.