Oji Holdings (3861) Q1 2027 earnings summary

Executive summary

• Achieved ¥3.9 billion operating profit and ¥3.2 billion net profit in 1Q FY2026, reversing a prior-year loss and in line with forecasts.

• Net sales rose 2.4% year-over-year to ¥468.5 billion, driven by price revisions and overseas expansion.

• FY2026 forecast remains unchanged: ¥60 billion operating profit and ¥35 billion net profit attributable to owners of parent.

• Dividend forecast maintained at ¥36/share; treasury stock buyback target of ¥100 billion achieved, with an additional ¥50 billion scheduled by FY2027.

• Progressing growth investments and restructuring of low-profitability businesses to transform the business portfolio.

Financial highlights

• Net sales rose to ¥468.5 billion, up ¥11.1 billion year-over-year.

• Operating profit increased by ¥0.2 billion to ¥3.9 billion; ordinary profit improved by ¥9.2 billion to ¥5.6 billion.

• EPS improved to ¥3.68 from a loss of ¥5.57 year-over-year.

• Net assets per share rose to ¥1,276.80 from ¥1,257.44 sequentially.

• Net D/E ratio remained at 0.9, within the management target of 1.0 or less.

Outlook and guidance

• Full-year net sales forecast at ¥1,940 billion, up 4.2% year-over-year.

• Operating profit projected at ¥60 billion, up 73.5% year-over-year; net profit at ¥35 billion, up 37.0% year-over-year.

• Both 1st and 2nd half forecasts unchanged; pulp market conditions and Middle East tensions expected to have limited net impact.

• Cost reduction initiatives and restructuring expected to offset weaker paper market and delayed domestic price increases.

• Operating profit for 2Q and 2H expected to improve as maintenance shutdowns decrease and price increases take effect.