Musashi Seimitsu Industry (7220) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2025 were ¥83.0 billion, down 6.6% year-over-year; operating profit was ¥3.8 billion, a 4.4% decrease.

• Net income declined 43.3% to ¥1.6 billion compared to the same quarter last year.

• EBITDA for the quarter was ¥8.1 billion, down 9.6% year-over-year.

• Comprehensive income turned negative at ¥(86) million, compared to ¥9,857 million in the prior year.

• The company is strengthening its management structure and expanding in energy solutions and e-mobility.

Financial highlights

• Operating profit margin was 4.6%, nearly flat year-over-year.

• Ordinary profit fell 22.7% to ¥3.3 billion; net income margin dropped to 2.0%.

• Cash and deposits increased by ¥4.1 billion to ¥38.2 billion at quarter-end.

• Free cash flow for Q1 was ¥3.1 billion.

• Basic EPS for Q1 FY2025 was ¥25.43, down from ¥44.88 year-over-year.

Outlook and guidance

• FY2025 full-year net sales forecast at ¥330.0 billion, down 5.0% from FY2024.

• Operating profit projected at ¥21.0 billion (+6.5% year-over-year); net income forecast at ¥11.0 billion (+41.3%).

• Dividend forecast maintained at ¥50 per share.

• Minimal impact from U.S. tariffs expected for FY2025.

• No changes to previously announced earnings forecasts.