Riken Keiki (7734) Q1 2027 earnings summary

Executive summary

• Net sales rose 12.2% year-over-year to ¥15,203 million, driven by strong overseas demand, especially in Asia and North America, and robust demand in semiconductor, lithium-ion battery, and shipbuilding sectors.

• Operating profit increased 3.2% year-over-year to ¥3,083 million, but the margin declined by 1.7 percentage points due to higher labor costs and pricing strategies for new products.

• Ordinary profit rose to ¥3,431 million, up 15.5% year-over-year.

• Net profit attributable to owners of parent was ¥2,415 million, up 13% year-over-year.

• Comprehensive income surged 65.4% year-over-year to ¥3,354 million.

Financial highlights

• Gross profit for the quarter was ¥6,851 million, with a gross margin of approximately 45%.

• Earnings per share (basic) increased to ¥53.14, a 14.2% increase year-over-year.

• Total assets as of June 30, 2026, were ¥105,945 million, up 4.8% from March 31, 2026.

• Net assets rose to ¥87,379 million, a 2.3% increase from the previous fiscal year-end.

• Net profit increased to ¥2,415 million, up 13% year-over-year.

Outlook and guidance

• Full-year net sales forecast is ¥60,000 million (up 8.7% year-over-year), with 25.3% of the target achieved in the first quarter.

• Operating profit forecast for the year is ¥12,700 million (up 2.2%), with a 24.3% achievement rate.

• Profit attributable to owners of parent for the full year is forecast at ¥9,600 million (down 3.6% year-over-year), with EPS expected at ¥211.19.

• No changes to previously announced forecasts.

• Management notes that actual results may differ due to economic and market uncertainties.