Macnica Holdings (3132) Q1 2026 earnings summary

Executive summary

• Net sales reached ¥281.6 billion in FY2025 Q1, up 9.9% year-over-year, driven by strong AI-related demand in semiconductors and robust cybersecurity business performance.

• Operating income was ¥8.2 billion, down 32% year-over-year, reflecting weaker industrial equipment demand and currency headwinds.

• Net income attributable to owners was ¥5.1 billion, a 36.6% decrease year-over-year, despite higher sales.

• Ordinary income dropped 57.5% year-over-year to ¥5,082 million, impacted by foreign exchange losses.

• The outlook for FY2025 remains unchanged, with expectations of a gradual recovery in industrial equipment and continued cybersecurity growth.

Financial highlights

• Semiconductor business net sales rose 10% year-over-year to ¥238.4 billion; cybersecurity business sales increased 11% to ¥41.7 billion.

• Operating income for the semiconductor business was ¥6.0 billion (down 38% year-over-year); cybersecurity business operating income was ¥4.3 billion (up 21%).

• Gross profit margin declined as cost of sales increased faster than net sales.

• Net income per share was ¥28.54, reflecting a 1-for-3 share split effective October 1, 2024.

• Cash and cash equivalents at quarter-end were ¥49,089 million, up ¥636 million from the previous fiscal year-end.

Outlook and guidance

• Full-year net sales forecast maintained at ¥1,050,000 million, up 1.5% year-over-year.

• Operating income projected at ¥42,000 million (+5.9%), ordinary income at ¥38,500 million (+3.2%), and net income attributable to owners of parent at ¥27,000 million (+6.8%).

• Management anticipates gradual market recovery in the electronics sector in the second half, with steady demand for security and data analysis products.

• FY2025 full-year forecast and dividend guidance remain unchanged.