Nabtesco (6268) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 net sales rose 16.9% year-over-year to ¥83.0 billion, with operating profit up 68% to ¥8.2 billion, driven by demand recovery and strong performance in precision reduction gears, automatic doors, and marine equipment.

• Major contributors to sales growth were Precision Reduction Gears (+¥4.8B), Automatic Doors (+¥4.0B), and Marine Vessels (+¥2.2B).

• Orders received increased 28.4% to ¥98,257 million, with growth across all business segments.

• The hydraulic equipment business was divested and reclassified as discontinued operations, impacting year-over-year comparability.

• Net income attributable to owners of the parent increased by 67.0% to ¥5,483 million; basic EPS was ¥46.78, up from ¥27.33.

Financial highlights

• Operating profit margin improved to 9.9%, up 3.0 points year-over-year.

• Gross profit rose to ¥26,863 million from ¥21,202 million year-over-year.

• Equity attributable to owners of the parent was ¥274,130 million, with an equity ratio of 61.7%.

• Cash and cash equivalents rose by ¥7,300 million to ¥80,640 million.

• Free cash flow was ¥(5,442) million for the quarter.

Outlook and guidance

• Full-year net sales forecast maintained at ¥327,000 million; operating income forecast at ¥27,700 million.

• Net income and EPS guidance revised upward to ¥18,600 million and ¥158.72, respectively, due to higher affiliate earnings.

• Dividend forecast raised to ¥82.00 per share for FY2026.

• No impact from Middle East geopolitical tensions included in FY2026 forecast.