SEIKO GROUP (8050) Q1 2026 earnings summary

Executive summary

• Q1 FY25 net sales reached ¥77.1 billion, up 4.2% year-over-year, with operating profit at ¥8.1 billion, a 60.2% increase year-over-year, driven by strong EVS and DS domain performance.

• Profit attributable to owners of parent surged 81.9% year-over-year to ¥6.3 billion.

• Comprehensive income declined 68.7% year-over-year to ¥2.2 billion, mainly due to negative other comprehensive income.

• Revenue and operating profit increased across all business domains, with notable growth in the Watches and Devices Solutions segments.

• Full-year forecasts for FY25 were revised upward, reflecting robust Q1 results and effective countermeasures against U.S. tariffs.

Financial highlights

• Net sales for Q1 FY25 were ¥77.1 billion (+4.2% YoY); operating profit was ¥8.1 billion (+60.2% YoY); ordinary profit was ¥8.4 billion (+56.7% YoY); profit attributable to owners of parent was ¥6.3 billion (+81.9% YoY).

• Gross profit margin improved by 2.1 points to 46.3%; operating profit margin rose by 3.7 points to 10.6%.

• Gross profit improved to ¥35.7 billion from ¥32.7 billion year-over-year.

• Basic earnings per share increased to ¥155.50 from ¥85.66 year-over-year.

• Extraordinary income of ¥0.5 billion was recorded from the sale of non-current assets.

Outlook and guidance

• FY25 net sales forecast revised to ¥314.0 billion (+0.6% from previous forecast); operating profit forecast raised to ¥23.5 billion (+4.4%).

• Full-year net sales forecast at ¥314.0 billion, up 3.0% year-over-year; operating and ordinary profit both projected at ¥23.5 billion, up 10.6% and 13.1% respectively.

• Profit attributable to owners of parent forecasted at ¥15.5 billion, up 16.4% year-over-year; basic EPS for the year forecasted at ¥379.29.

• Dividend forecast revised upward to ¥120 per share for the fiscal year ending March 31, 2026.

• U.S. tariff impact estimated at ¥0.7 billion, down from ¥1.0 billion, with price adjustments implemented.