Seiren (3569) Q1 2026 earnings summary

Executive summary

• Overseas Automotive Interior Business led growth, achieving record-high sales and profits in Q1 FY2025/FY2026, marking five consecutive periods of increased sales and profits.

• High-fashion and Electronics segments contributed strongly, with robust demand for sports/outdoor materials, conductive fibers, and specialty yarn.

• All major profit categories—sales, operating profit, ordinary profit, and net profit—reached record highs for the first quarter.

• The business environment showed gradual recovery but remained uncertain due to high energy/raw material costs, U.S. policy trends, and geopolitical risks.

Financial highlights

• Q1 FY2025/FY2026 sales: ¥40,625 million, up 5.0% year-over-year.

• Operating profit: ¥5,399 million, up 31.1% year-over-year; operating margin rose to 13.3%.

• Ordinary profit: ¥5,705 million, up 23.6% year-over-year.

• Net income attributable to shareholders: ¥4,088 million, up 16.6% year-over-year.

• Comprehensive income dropped sharply to ¥138 million from ¥6,792 million year-over-year, mainly due to negative foreign currency translation adjustments.

Outlook and guidance

• Full-year forecast revised upward, projecting record-high operating, ordinary, and net profits for the fifth consecutive year.

• FY2025/FY2026 sales forecast: ¥160,000 million; operating profit: ¥19,200 million; net income: ¥14,300 million.

• Dividend forecast for FY2026 raised to ¥76.00 per share (interim ¥38.00, year-end ¥38.00).

• Equipment investment for FY2025 expected at ¥10,130 million, with 58% allocated overseas.