Mitsubishi Research Institute (3636) Q1 2026 earnings summary

Executive summary

• Net sales and profits for the 3M period reached record highs, with both TTC and ITS segments contributing to growth, driven by strong demand in AI, energy, digital transformation, and government and private sector projects.

• Revenue and profits increased year-over-year, supported by a significant order backlog and elimination of unprofitable projects, with only slight cost increases.

• The company is restructuring and focusing investments in high-growth areas, preparing for a new medium-term plan starting FY2027.

Financial highlights

• Net sales rose to ¥30,899 million, up 11.5% year-over-year, with operating profit up 133.5% to ¥3,455 million and profit attributable to owners of parent up 165.6% to ¥2,634 million.

• Gross profit increased 31.1% to ¥8,432 million, with gross margin improving by 4.1 points to 27.3%.

• Ordinary profit nearly doubled to ¥3,857 million (+99.0%), and comprehensive income reached ¥2,992 million, up 151.2% year-on-year.

• Basic earnings per share rose to ¥167.27 from ¥63.01 in the prior year.

• Total assets decreased 3.1% to ¥124,187 million, while net assets increased 1.6% to ¥82,652 million.

Outlook and guidance

• Full-year forecast for FY2026 remains unchanged: net sales of ¥122,000 million (+0.4% year-on-year), operating profit of ¥7,500 million (-6.4%), ordinary profit of ¥9,000 million (-7.5%), and profit attributable to owners of parent of ¥5,800 million (-9.2%).

• Annual dividend forecast is ¥165.00 per share, unchanged from the previous year.

• 3M progress rates for net sales and profits are ahead of previous years, but close monitoring is advised for the next two quarters.