Valqua (7995) Q1 2026 earnings summary

Executive summary

• Net sales for 1Q FY3/2026 declined 8.4% year-over-year to ¥13,949 million, with gross profit nearly flat at ¥6,026 million and operating profit rising 24.6% to ¥1,802 million.

• Profit attributable to owners fell 2.8% year-over-year to ¥1,261 million.

• Orders received totaled ¥13,259 million, with order backlog at quarter-end of ¥10,341 million, reflecting delayed recovery in high performance plastics.

• Segment changes were implemented due to the sale of the silicon wafer recycling business, impacting historical comparisons.

Financial highlights

• Gross profit margin was 43.2%, up from 39.8% in the previous year.

• Operating profit margin improved to 12.9% from 9.5% year-over-year.

• EPS for the quarter was ¥71.72, compared to ¥73.84 a year earlier.

• Comprehensive income dropped to ¥426 million from ¥1,964 million year-over-year, mainly due to foreign currency translation losses.

• Shareholders' equity ratio decreased slightly to 64.4% from 64.9% at the previous fiscal year-end.

Outlook and guidance

• Full-year FY3/2026 net sales are forecast at ¥62.0 billion, up 3.1% year-over-year.

• Operating profit is projected to rise 23.5% to ¥7.0 billion, with profit attributable to owners up 2.6% to ¥4.8 billion.

• First half forecast: net sales ¥29.0 billion (−3.6% YoY), operating profit ¥3.0 billion (+2.6% YoY), profit attributable to owners ¥1.8 billion (−9.9% YoY).

• Recovery in the Tech Market and absorption of the silicon wafer recycling business sale are expected to drive growth in the second half.

• Risks to outlook include global economic uncertainties, semiconductor market recovery delays, labor shortages, and rising costs.