TOKYO KEIKI (7721) Q1 2026 earnings summary

Executive summary

• Net sales increased 21.3% year-over-year to ¥10,548 million in 1Q FY2025, with all business segments posting sales growth, led by strong performance in Defense & Communications Equipment.

• Operating loss narrowed to ¥326 million from ¥479 million a year earlier, reflecting improved profitability.

• Order backlog reached a record high of ¥58,487 million, supported by robust orders in Railway Maintenance and Defense & Communications Equipment.

• Loss attributable to owners improved to ¥177 million from ¥258 million year-over-year.

• Strong performance in Defense & Communications Equipment was driven by increased Japanese defense budgets.

Financial highlights

• 1Q FY2025 net sales: ¥10,548 million, up ¥1,855 million (+21.3%) year-over-year.

• 1Q FY2025 operating loss: ¥326 million, improved from ¥479 million loss YoY.

• 1Q FY2025 ordinary loss: ¥297 million, improved from ¥407 million loss YoY.

• 1Q FY2025 loss attributable to owners: ¥177 million, improved from ¥258 million loss YoY.

• Basic EPS: ¥(10.75), improved from ¥(15.71) YoY.

Outlook and guidance

• Full-year FY2025 forecast unchanged: net sales ¥59,600 million (+3.4% YoY), operating profit ¥3,890 million (–19.9% YoY), ordinary profit ¥3,910 million (–21.8% YoY), net profit ¥2,460 million (–35.2% YoY), EPS ¥149.73.

• Extraordinary losses of ¥890 million planned for headquarters relocation remain unchanged.

• Dividend forecast: ¥40 per share for FY2026, up from ¥35 per share in FY2025.

• Segment forecasts expect steady demand in Marine Systems, recovery in industrial machinery, and continued high levels in Defense.

• No changes to previously announced forecasts.