THK (6481) Q1 2026 earnings summary

Executive summary

• Announced and completed transfer of the Automotive & Transportation business, which is now classified as a discontinued operation, significantly impacting revenue and profit structure; FY2025 and FY2026 results and forecasts exclude this segment.

• Revenue for Q1 2026 rose 27.4% year-over-year to ¥69,043 million, driven by recovery in electronics-related demand in the industrial machinery business.

• Operating income surged 364.4% year-over-year to ¥7,620 million, with margin improving to 11.0%.

• Focus remains on industrial machinery, capital goods, and expansion into consumer goods, medical equipment, and renewable energy.

• Management targets early realization of ROE over 10% and emphasizes innovation, globalization, and value-added digital services.

Financial highlights

• FY2025 revenue: ¥351.9B; FY2026 forecast: ¥352.7B, both excluding the transferred business.

• Q1 2026 gross profit was ¥22,882 million, up from ¥15,653 million year-over-year.

• Operating income for FY2025: ¥17.3B; FY2026 forecast: ¥14.4B; Q1 2026 operating income margin improved to 11.0%.

• EPS for FY2025: ¥85.17; FY2026 forecast: ¥93.73; Q1 2026 EPS rose to ¥40.09 from ¥2.75 year-over-year.

• Dividend per share for FY2025: ¥146.5; FY2026 forecast: ¥246.0; 2026 projected at ¥184.00 per share, based on an 8% DOE policy.

Outlook and guidance

• FY2026 revenue and operating income guidance remain stable, reflecting the new business structure post-automotive segment transfer.

• Full-year 2026 revenue forecast is ¥276,000 million, up 14.8% year-over-year; operating income projected at ¥31,000 million, up 114.7% year-over-year.

• Management continues to pursue globalization and regional production optimization.