Otsuka (4768) Q1 2026 earnings summary

Executive summary

• Achieved record highs in sales and all profit categories for the fourth consecutive year, with consolidated net sales rising 9.3% year-over-year to ¥344.8 billion and operating profit increasing 11.0% to ¥23.5 billion.

• Profit attributable to owners of parent grew 15.2% year-over-year to ¥16.7 billion.

• OSM (security) sales rose approximately 1.5 times, driven by increased security demand and adoption of security measure evaluation systems.

• Accumulated Business, including supply and maintenance services, continues steady growth, supporting stable expansion and productivity improvements.

Financial highlights

• Consolidated net sales for 1Q 2026 reached ¥344.8 billion, up 9.3% year-over-year; non-consolidated net sales were ¥300.2 billion, up 7.3%.

• Consolidated operating profit was ¥23.5 billion (+11.0% YoY), ordinary profit ¥24.3 billion (+11.3% YoY), and profit attributable to owners of parent ¥16.7 billion (+15.2% YoY).

• Gross profit improved to ¥65.6 billion from ¥60.1 billion year-over-year, a 7.0% increase in 1Q 2026.

• Basic earnings per share increased to ¥44.01 from ¥38.22 year-over-year.

• Cash and cash equivalents at period end were ¥261.4 billion, up from ¥200.9 billion a year earlier.

Outlook and guidance

• FY2026 consolidated net sales are projected at ¥1,311 billion, with operating profit of ¥90 billion and ordinary profit of ¥90.1 billion.

• 1H 2026 targets are net sales of ¥689.3 billion and operating profit of ¥48.7 billion.

• Profit attributable to owners of parent expected to decrease 4.9% to ¥61.13 billion.

• Annual dividend forecast raised to ¥95.00 per share from ¥90.00.