SWCC Corporation (5805) Q1 2026 earnings summary

Executive summary

• Net sales rose 9.2% year-over-year to ¥62.2 billion, driven by strong Power Infrastructure and Communication and Components performance, despite weaker Construction Cables demand.

• Operating profit increased 1.8% year-over-year to ¥5.0 billion.

• Profit attributable to owners of parent grew 6.9% year-over-year to ¥4,952 million.

• Basic earnings per share reached ¥102.32, up from ¥99.20 in the prior year period.

• Investments continued in decarbonization and digitization, with high demand in AI and semiconductor markets offsetting automotive market uncertainties.

Financial highlights

• Ordinary profit increased 6.9% year-over-year to ¥5.0 billion; comprehensive income declined 40.7% to ¥2,336 million.

• Operating profit margin was 8.0% (8.3% excluding goodwill amortization).

• Total assets as of June 30, 2025 were ¥186,548 million, with net assets at ¥84,969 million.

• Equity-to-asset ratio improved to 44.7% from 42.3% at the previous fiscal year-end.

• Free cash flow improved quarter-over-quarter due to higher profits and better receivables collection.

Outlook and guidance

• Both net sales and operating profit are tracking in line with full-year projections; Q1 progress rates for net sales and operating profit were 23.9% and 20.2%, respectively.

• Full-year net sales forecast at ¥260,000 million, up 9.3% year-over-year; operating profit projected at ¥24,500 million, a 17.0% increase.

• Profit attributable to owners of parent expected to reach ¥15,000 million, up 31.6% year-over-year.

• Basic earnings per share forecasted at ¥507.23 for the full year.

• No revisions to previously announced forecasts.