Teikoku (6333) Q4 2026 earnings summary

Executive summary

• FY2026 revenue fell 4.8% to ¥29,091m and operating profit fell 17.7% to ¥4,983m; net income rose 13.9% to ¥4,341m.

• Lower sales in China and the US, currency headwinds, weaker product mix and the end of the electronics business weighed on results; sales and ordinary profit exceeded plan, while operating profit was slightly below plan.

• FY2027 guidance forecasts revenue growth and slight operating profit growth, but lower ordinary profit and net income.

• Comprehensive income decreased to ¥4,411m from ¥5,123m in FY2025.

Financial highlights

• FY2026 gross profit was ¥12,407m, down 10.6% YoY; SG&A was ¥7,424m, down 5.2%.

• Ordinary profit was ¥5,444m, down 13.5%; net income attributable to owners of the parent was ¥4,341m, up 13.9%.

• Net income included ¥140m in fixed-asset sale gains and ¥868m in investment-security sale gains; FY2025 included a ¥472m affiliate restructuring loss.

• Operating profit declined ¥1,111m on lower gross profit, partly offset by ¥44m lower SG&A, ¥82m favorable FX impact and ¥77m from the electronics-business cessation.

• Basic EPS rose to ¥265.69 from ¥219.27.

Outlook and guidance

• FY2027 plan: revenue ¥31,010m (+6.6%), operating profit ¥5,020m (+0.7%), ordinary profit ¥5,230m (-3.9%) and net income ¥3,750m (-13.6%).

• Sales growth is expected in H1 from backlog and China production recovery, and in H2 from gradual US recovery; assumptions include high backlog, US market recovery and yen weakness.

• Planned FY2027 exchange rates: $1=¥155, CNY1=¥22.5, €1=¥180, KRW1=¥0.1 and INR1=¥1.7.

• FY2027 regional sales plan: Japan ¥9,400m (+4.7%), Europe/Americas ¥8,460m (+11.9%) and Asia ¥13,150m (+4.7%).