MK Seiko (5906) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FY2026 was ¥6,134 million, down 12.9% year-over-year; operating profit fell 51.1% to ¥357 million, and net profit attributable to shareholders dropped 53.9% to ¥237 million.

• The company is restructuring its business portfolio, including the planned divestiture of its hotel business to focus on core operations.

• Market conditions remain uncertain due to persistent inflation and global trade policy risks, impacting consumer demand and investment.

Financial highlights

• Gross profit for Q1 FY2026 was ¥2,179 million, with a gross margin of 35.5%, down from 35.0% in the prior year.

• Ordinary profit decreased 50.1% year-over-year to ¥383 million.

• Comprehensive income for the quarter was ¥153 million, a 78% decrease year-over-year.

• EPS for Q1 FY2026 was ¥16.45, compared to ¥35.14 in the previous year.

Outlook and guidance

• Full-year revenue forecast revised to ¥27,800 million (down 1.7% year-over-year), with operating profit expected at ¥1,700 million (down 14.7%).

• Net profit for the year is projected at ¥1,350 million, a 1.2% increase year-over-year.

• Dividend forecast for FY2026 is ¥12.00 per share, up from ¥10.00 in the prior year.