Rinnai (5947) Q1 2026 earnings summary

Executive summary

• Record-high consolidated net sales of ¥102.7 billion, up 4.6% year-over-year, driven by high-value-added products and energy efficiency demand.

• Operating income rose 11.2% year-over-year to ¥9.7 billion, despite higher raw material and energy costs.

• Net income attributable to owners declined 2.9% year-over-year to ¥6.6 billion due to foreign exchange losses.

• Ordinary income decreased 1.9% year-over-year to ¥10.6 billion, impacted by forex losses.

• Comprehensive income turned negative at ¥(1,939) million, mainly due to foreign exchange translation losses.

Financial highlights

• Operating income to net sales ratio improved to 9.4%, up 0.6pt year-over-year.

• Net income to net sales ratio was 6.4%, down from 7.4% a year ago.

• Net income per share: ¥47.15 (vs. ¥47.71 previous year).

• Gross profit: ¥35,347 million; gross margin improved year-over-year.

• Ordinary income to net sales ratio: 10.4%.

Outlook and guidance

• Full-year net sales forecast at ¥470 billion (+2.1% year-over-year), operating income at ¥50 billion (+8.7%).

• Net income for the year projected at ¥33 billion (+11.1% year-over-year).

• Net income per share forecast: ¥237.37, reflecting a share buyback.

• Dividend per share for FY2026 forecasted at ¥100.00 (up from ¥80.00 in FY2025).

• No changes to interim and full-year forecasts.