Sumitomo Electric Industries (5802) Q1 2027 earnings summary

Executive summary

• Net sales for 1Q FY2026 rose to ¥1,330.6bn, up 15.9% year-over-year, with operating profit increasing to ¥97.1bn, a 61.0% gain from 1Q FY2025.

• Ordinary profit rose 66.6% to ¥103.0bn.

• Profit attributable to owners of the parent reached ¥66.4bn, up 89.1% year-over-year.

• Comprehensive income surged 418.3% to ¥176.8bn.

• Q1 results exceeded expectations, prompting an upward revision of full-year forecasts despite Middle East impacts.

Financial highlights

• Gross profit increased to ¥259.6bn year-over-year, with operating margin improving to 7.3%.

• Basic earnings per share for the quarter was ¥21.29, up from ¥11.26, reflecting a stock split adjustment.

• Total assets increased to ¥5,143.5bn as of June 30, 2026.

• Net assets rose to ¥2,927.7bn, up ¥92.7bn from FY2025 year-end.

• Interest-bearing debt rose by ¥116.4bn to ¥826.2bn at quarter-end.

Outlook and guidance

• FY2026 full-year net sales forecast revised upward to ¥5,400.0bn, with operating profit expected at ¥450.0bn.

• Profit attributable to owners of the parent forecast at ¥340.0bn for FY2026.

• Basic earnings per share for the full year is forecast at ¥108.99, based on post-stock split shares.

• Dividend forecast maintained at ¥39.0 per share post-split.

• Middle East situation expected to reduce operating income by ¥23.0bn for the full year.