NSK (6471) Q1 2027 earnings summary

Executive summary

• Sales for Q1 rose 30.6% year-over-year to ¥255.6bn, with operating income up 212.3% to ¥15.0bn and net income attributable to owners up 795.6% to ¥9.7bn, driven by a weaker yen, consolidation of the Steering Business, and robust industrial demand.

• Profitability improved due to operational enhancements, business portfolio reforms, and favorable forex impacts.

• Upward revision of the FY2026 full-year forecast, reflecting strong Q1 results and current order trends.

Financial highlights

• Q1 sales reached ¥255.6bn, up ¥59.9bn (+30.6%) year-over-year; operating income was ¥15.0bn, up ¥10.2bn (+212.3%).

• Net income attributable to owners was ¥9.7bn, up ¥8.6bn (+795.6%) year-over-year.

• Full-year sales forecast revised to ¥1,040.0bn and operating income to ¥50.0bn.

• Dividend plan maintained at ¥34 per share, targeting a minimum DOE of 2.5%.

• Basic earnings per share rose to ¥19.83 from ¥2.22 year-over-year.

Outlook and guidance

• Industrial Machinery expected to maintain strong performance, especially in semiconductor and machine tool sectors.

• Automotive segment faces supply chain risks; global vehicle production forecast flat year-over-year.

• Cost increases from tariffs and integration with NTN Corporation to be passed on to customers.

• Structural reforms and business integration costs included in guidance.

• Full-year net income forecast at ¥29.0bn (+26.8%).