Parker (9845) Q1 2027 earnings summary

Executive summary

• Revenue increased by 11.7% year-over-year to 19,355 million yen, driven by strong sales to key automotive customers and robust demand in several segments.

• Operating income declined by 3.8% year-over-year to 1,550 million yen, and net income attributable to shareholders fell 7.9% to 1,153 million yen, reflecting higher raw material costs and prolonged price negotiations.

• The business environment remains uncertain due to rising energy and raw material prices linked to Middle East tensions, despite steady domestic consumption and automotive sales.

Financial highlights

• Gross profit rose slightly to 4,791 million yen from 4,736 million yen year-over-year.

• Ordinary income decreased by 5.0% year-over-year to 1,721 million yen.

• Comprehensive income surged to 2,082 million yen, up 919.5% year-over-year, mainly due to valuation gains.

• EPS for the quarter was 46.08 yen, down from 50.03 yen in the prior year.

Outlook and guidance

• Full-year revenue is forecast at 74,000 million yen, up 0.9% year-over-year.

• Operating income is projected at 6,200 million yen (up 12.5%), while net income is expected to decline 6.3% to 4,400 million yen.

• No changes have been made to previously announced guidance.