Nippon Sanso (4091) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 revenue grew 14.9% year-on-year to ¥361.7 billion, driven by favorable FX, price management, and acquisitions, with core operating income up 19.9% and net income up 54% to ¥43.7 billion.

• Profitability improved in most regions except Japan, where electronics-related equipment and construction sales declined.

• Electronics-related business benefited from strong semiconductor demand, especially in Asia, with high utilization and capital investment.

• New management structure established post-AGM, with increased investment in HYSYTECH and new directors appointed.

Financial highlights

• Q1 sales: ¥361.7bn (+14.9% YoY); core operating income: ¥54.6bn (+19.9% YoY); net income: ¥44.7bn (+53.0% YoY); EBITDA margin: 25% (up from 23.8%).

• Operating income (IFRS): ¥64.7bn (+42.1% YoY); basic EPS: ¥101.00 (up from ¥65.60 YoY).

• Free cash flow increased to ¥38.2bn, up from ¥22.0bn YoY; CAPEX: ¥28.5bn.

• Non-recurring items included profit from HQ land sale (+¥12.4bn), partially offset by impairment losses and rebranding costs.

Outlook and guidance

• Full-year revenue forecast: ¥1,380.0bn (+1.5% YoY); net income projected at ¥131.0bn (+5.7% YoY); EPS forecast: ¥302.64.

• Q2 expected to be in line with Q1, with moderate recovery in European on-site volumes and stable performance in Asia and the U.S.

• No revisions to previously announced forecasts.