Stanley Electric (6923) Q1 2026 earnings summary

Executive summary

• Net sales for 1Q FY2026/3 were ¥119.83 billion, down 1.3% year-over-year, with operating income at ¥8.60 billion, down 9.7%.

• Profit attributable to owners of parent dropped 58.4% year-over-year to ¥5.15 billion.

• Comprehensive income fell sharply to ¥482 million from ¥30,398 million a year earlier.

• Both sales and income declined due to US tariffs and foreign exchange fluctuations, but results slightly outperformed forecasts.

• Asia-Pacific (two-wheel) remained strong, while China saw sales decline but improved income margin through rationalization.

Financial highlights

• Ordinary income decreased 12.7% to ¥10.22 billion.

• Net income per share dropped 55.2% to ¥34.58.

• Gross profit was ¥23.70 billion, slightly up year-over-year.

• Foreign exchange fluctuations reduced net sales by ¥7.36 billion and operating income by ¥0.71 billion.

• Capital adequacy ratio was 64.6% as of June 30, 2025.

Outlook and guidance

• FY2026/3 full-year net sales forecast at ¥480.0 billion, with some sources noting a 5.8% decrease and others a 5.7% increase year-over-year.

• Operating income forecast at ¥41.2 billion, down 15.9% year-over-year.

• Net income per share expected to be ¥179.73, down from ¥205.73.

• Profit attributable to owners of parent is forecast at ¥26.8 billion, down 16.4% year-over-year.

• Full-year dividend forecast is ¥92.00 per share, up from ¥72.00 in the previous year.