Nippon Gear (6356) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FY2026 was ¥2,069 million, a 2.0% decrease year-over-year, while order intake surged 39.8% to ¥3,439 million and order backlog rose 29.8% to ¥5,972 million.

• Operating profit dropped 27.6% year-over-year to ¥378 million, with net profit down 27.2% to ¥269 million, mainly due to increased SG&A expenses from actuarial differences in pension costs.

• No changes were made to the previously announced full-year guidance.

Financial highlights

• Gross profit increased to ¥997 million despite lower sales, as cost of sales declined 8.4% year-over-year.

• SG&A expenses rose 48.1% to ¥618 million, primarily due to pension-related actuarial differences.

• Operating margin for Q1 FY2026 was 18.3%, down from 24.8% in the prior year.

• EPS for the quarter was ¥18.89, down from ¥25.96 year-over-year.

Outlook and guidance

• Full-year revenue is forecast at ¥9,300 million, a 2.7% decrease year-over-year, with net profit expected at ¥1,480 million, down 4.5%.

• Interim and year-end dividends are projected at ¥4.00 per share each, unchanged from prior guidance.