Seika (8061) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2026 rose 24.8% year-over-year to 25.56 billion yen, driven by strong Energy and recovering Industrial Machinery segments.

• Operating profit increased 20.8% year-over-year to 1.59 billion yen.

• Ordinary profit declined 24.4% year-over-year to 1.80 billion yen, impacted by absence of prior year negative goodwill and lower non-operating income.

• Profit attributable to owners of parent dropped to 1.78 billion yen, impacted by extraordinary loss from litigation provisions.

• Order backlog grew 10.2% year-over-year to 66.81 billion yen, reflecting robust demand.

Financial highlights

• Transaction value surged 42.1% year-over-year to 63.10 billion yen.

• Amount of orders received increased 7.3% year-over-year to 25.62 billion yen.

• Gross profit improved to 6.43 billion yen from 5.81 billion yen year-over-year.

• Comprehensive income fell 58.1% year-over-year to 1.09 billion yen.

• EPS for Q1 FY2026: 168 yen (after share split forecast), 504 yen (before split); EPS for the quarter was 148.85 yen, down from 311.49 yen in the prior year.

Outlook and guidance

• FY2026 net sales forecast at 105.0 billion yen, up 12.0% from FY2025.

• Operating profit projected at 6.60 billion yen (+1.7%), ordinary profit at 7.15 billion yen (-13.9%), and profit attributable to owners of parent at 6.05 billion yen (-22.4%).

• Full-year operating profit projected at 3.50 billion yen, down 18.0% year-over-year.

• EPS forecast for the full year is 168.12 yen, reflecting a 3-for-1 stock split.

• Segment profit calculation method to include equity in earnings/losses of affiliates from FY2026.