Secom (9735) Q1 2026 earnings summary

Executive summary

• Achieved record-high net sales for the first quarter, driven by strong security services, price increases, and new product launches including facial recognition-equipped controllers and public-road certified security robots.

• Operating profit increased 10.1% year-over-year to ¥32,219 million, while ordinary profit declined 3.7% to ¥39.3 billion due to lower gains on US investment partnerships.

• Profit attributable to owners of parent grew 1.2% year-over-year to ¥24,939 million, aided by lower non-controlling interest impact.

• Comprehensive income fell 54.1% year-over-year to ¥18.7 billion, mainly due to negative foreign currency translation adjustments.

• Expanded global presence by agreeing to acquire AVTEL Holdings and introduced XR-based employee training programs.

Financial highlights

• Net sales for 1Q FY2026 rose 6.3% year-over-year to ¥287,992 million, marking a new quarterly record.

• Operating profit increased 10.1% year-over-year to ¥32,219 million.

• Basic earnings per share for the quarter was ¥60.24, reflecting a 2-for-1 stock split effective October 2024.

• Gross profit increased to ¥89.98 billion from ¥84.06 billion year-over-year.

• Total assets decreased 2.4% from March 31, 2025 to ¥2,093.9 billion; net assets declined 1.6% to ¥1,424.4 billion.

Outlook and guidance

• Full-year net sales projected at ¥1,251,000 million, up 4.3% from the previous year.

• Operating profit forecasted to reach ¥150,000 million, a 4.0% increase year-over-year.

• Profit attributable to owners of parent forecast at ¥103.4 billion, down 4.4% year-over-year.

• Forward-looking statements are subject to significant uncertainties and actual results may differ.