Seiko Epson (6724) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 revenue was ¥320.9B, down 4.7% year-over-year, mainly due to yen appreciation and U.S. tariff impacts.

• Business profit fell 15.9% to ¥19.8B; profit attributable to owners dropped 65.5% to ¥6.6B.

• Revenue and business profit exceeded internal plans, aided by foreign exchange effects.

• Comprehensive income turned negative at ¥-3.6B, compared to ¥49.2B last year, due to adverse exchange differences.

• Full-year business profit forecast remains at ¥75B, with additional U.S. tariff costs factored in.

Financial highlights

• Operating profit dropped 37.1% to ¥14.1B; profit before tax decreased 52% to ¥12.9B.

• Net profit attributable to owners was ¥6.6B, down 65.5% year-over-year; EPS was ¥20.64.

• Gross profit for the quarter was ¥116.3B, down from ¥119.9B year-over-year.

• Cash and cash equivalents at quarter-end were ¥229.9B, down from ¥267.0B at the previous fiscal year-end.

• Foreign exchange losses significantly impacted profits; revenue in printing solutions and visual communications declined.

Outlook and guidance

• FY2025 revenue forecast is ¥1,340.0B, up ¥20B from the previous outlook, reflecting yen depreciation.

• Business profit guidance unchanged at ¥75.0B; profit for the year expected at ¥41.0B.

• Tariff costs raised by ¥10B to ¥27B due to U.S. policy; price increases and production transfers are planned countermeasures.

• Assumed exchange rates for the remainder of the year: ¥139/USD and ¥164/EUR.

• Exchange rate assumptions revised to a weaker yen; cost control and investment in growth to continue.