Sanyo Denki (6516) Q1 2026 earnings summary

Executive summary

• Operating revenue rose 4.3% year-over-year to ¥24.1 billion in FY 2025 Q1, with operating profit up 21.6% to ¥1.7 billion.

• Net profit declined 22.7% year-over-year to ¥1.0 billion, mainly due to foreign exchange losses and higher raw material costs.

• Orders received surged 20.7% to ¥25,785 million, while order backlog declined 11.8% to ¥37,516 million.

• Strong demand in AI servers, network equipment, and partial recovery in machine tools and mounters.

Financial highlights

• Gross profit increased to ¥6.3 billion (26.1% margin) from ¥5.9 billion (25.5%) year-over-year.

• Operating profit margin improved to 7.1% from 6.1% year-over-year.

• Profit before taxes fell 29.2% to ¥1.5 billion, impacted by foreign exchange losses.

• Equity decreased slightly to ¥112.6 billion, while current liabilities rose to ¥24.5 billion.

• Cash and cash equivalents increased by ¥631 million to ¥29,530 million at quarter-end.

Outlook and guidance

• Full-year revenue forecast is ¥107.1 billion, with net profit forecasted at ¥8.5 billion and basic EPS at ¥712.76.

• Operating profit expected to rise 45.5% to ¥11.5 billion; ROE targeted at 7.3% for FY 2025, with a long-term goal of 10%+.

• Annual dividend forecast adjusted to ¥36.67 per share post-stock split.

• No revisions have been made to the previously announced business results forecast.