Sanken Electric Co (6707) Q1 2026 earnings summary

Executive summary

• Net sales for the three months ended June 30, 2025, were ¥22,238 million, down 55.4% year-over-year due to the exclusion of Allegro MicroSystems as a consolidated subsidiary.

• Operating loss narrowed to ¥387 million from ¥4,640 million year-over-year.

• Ordinary loss was ¥940 million, improved from ¥5,658 million in the prior year, impacted by foreign exchange losses and equity method losses.

• Loss attributable to owners of parent was ¥864 million, compared to ¥2,690 million loss year-over-year.

• Acquisition of POWDEC K.K. completed in April 2025 to strengthen GaN power device capabilities.

Financial highlights

• Gross profit for the quarter was ¥2,884 million, down from ¥13,621 million year-over-year.

• Comprehensive income was negative ¥1,619 million, compared to positive ¥6,933 million in the prior year.

• Basic earnings per share for the quarter was negative ¥39.01, compared to negative ¥111.40 year-over-year.

Outlook and guidance

• Full-year net sales forecast is ¥89,200 million, down 26.7% year-over-year.

• Full-year operating profit forecast is ¥400 million, with a projected net loss attributable to owners of parent of ¥4,400 million.

• No change to previously announced financial forecasts.