MEITEC (9744) Q1 2026 earnings summary

Executive summary

• Net sales rose 3.6% year-over-year to ¥34,084 million for the quarter ended June 2025, driven by strong orders in the Engineering Solutions segment and proactive recruitment despite a challenging hiring environment.

• Operating profit increased 2.3% year-over-year to ¥4,879 million, with profit attributable to owners of parent up 3.4% to ¥3,332 million.

• Proactive recruitment led to 645 new employees joining in April 2025, though total engineers decreased by 98 year-over-year.

• Utilization ratio for engineers remained stable at 96.4% for Meitec and 93.3% for Meitec Fielders, while working hours per day slightly decreased.

Financial highlights

• Gross profit for the quarter was ¥9,152 million, up from ¥8,992 million year-over-year.

• Ordinary profit reached ¥4,911 million, a 2.7% increase year-over-year.

• Diluted earnings per share rose to ¥43.16 from ¥41.75 in the prior year.

• Total assets decreased to ¥80,835 million as of June 30, 2025, mainly due to lower cash and deposits following bonus and dividend payments.

• Meitec segment net sales grew 3.6% and operating profit rose 5.5% year-over-year; Meitec Fielders net sales up 2.7% but operating profit down 9.8% due to higher labor expenses.

Outlook and guidance

• First quarter results represent approximately 50% progress toward full-year forecasts for net sales, operating profit, and profit attributable to owners of parent.

• Full-year net sales forecast is ¥137,300 million (+3.2%), operating profit ¥19,700 million (+4.6%), and profit attributable to owners of parent ¥13,400 million (+5.2%).

• Earnings per share for the fiscal year ending March 31, 2026, is forecast at ¥173.56.

• Management notes high economic uncertainty and cautions that actual results may differ materially from forecasts.