MEITEC (9744) Q1 2027 earnings summary

Executive summary

• Net sales rose 1.5% year-over-year to ¥34,600 million for the quarter ended June 30, 2026, amid a gradually recovering but uncertain economic environment.

• Operating profit increased 9.1% year-over-year to ¥5,322 million, with ordinary profit up 8.7% and profit attributable to owners of parent up 7.3%.

• Results were supported by strong orders in the Engineering Solutions Business, which accounts for over 90% of consolidated net sales.

• Proactive recruitment continued, with 502 new employees joining in April 2026, though total engineers decreased 1.5% year-over-year.

• First quarter results achieved approximately 50% of the first-half earnings plan.

Financial highlights

• Consolidated net sales for 1Q were ¥34,600 million, up 1.5% year-over-year.

• Operating profit reached ¥5,322 million, a 9.1% increase year-over-year, with an operating margin of 15.4%.

• Gross profit increased to ¥9,713 million from ¥9,152 million year-over-year.

• Profit attributable to owners of parent was ¥3,574 million, up 7.3% year-over-year, with a profit margin of 10.3%.

• Earnings per share rose to ¥46.30 from ¥43.16 year-over-year.

Outlook and guidance

• Progress against the initial 2Q forecast is on track, with net sales and profits at approximately 50-57% of the full first-half targets.

• Full-year net sales forecast at ¥140,800 million, up 2.3% year-over-year.

• Operating profit projected at ¥20,500 million, up 3.0% year-over-year; profit attributable to owners of parent forecast at ¥13,900 million, down 6.3%.

• Earnings per share for the full year expected at ¥180.04.

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