Nihon Kohden Corporation (6849) Q1 2026 earnings summary

Executive summary

• Net sales rose 8.2% year-over-year to ¥50,020 million in 1Q FY2025, with strong growth in both domestic and overseas markets.

• Operating income turned positive at ¥1,400 million, reversing a loss in the prior year, driven by higher sales, improved gross margin, and the consolidation of Ad-Tech.

• Ordinary income declined 71.7% year-over-year to ¥473 million due to foreign exchange losses.

• Net income attributable to owners dropped 82.1% year-over-year to ¥137 million.

• The company reaffirmed its full-year forecast, expecting net sales of ¥240,000 million and operating income of ¥24,000 million.

Financial highlights

• Gross profit increased 20.4% year-over-year to ¥26,316 million, with gross margin improving from 47.3% to 52.6%.

• Domestic sales grew 4.0% to ¥30,686 million, while overseas sales surged 15.5% to ¥19,334 million (+22% on a local currency basis).

• Operating income improved to ¥1,400 million from a loss of ¥1,248 million year-over-year.

• Cash and cash equivalents increased by ¥1,151 million to ¥44,213 million at quarter-end.

• Ordinary income dropped 71.7% to ¥473 million, and net income attributable to owners fell 82.1% to ¥137 million, mainly due to foreign exchange losses.

Outlook and guidance

• FY2025 net sales forecast is ¥240,000 million (+6.5% year-over-year), with operating income projected at ¥24,000 million (+15.9%).

• Overseas sales expected to rise 12.5% to ¥90,200 million, with North America and Asia & Other regions leading growth.

• Gross profit margin forecasted at 52.5%, and operating income margin at 10.0%.

• Net income attributable to owners forecasted at ¥15,000 million (+6.4%).

• Dividend forecast unchanged at ¥32.00 per share for the year.