W-SCOPE (6619) Q1 2027 earnings summary

Executive summary

• Q1 FY Jan. 2027 sales rose to ¥1,386 million, up 183.2% year-over-year, driven by strong IEM and separator business performance.

• Operating loss narrowed significantly to ¥-364 million from ¥-1,494 million in the prior year, reflecting cost reductions.

• Net income attributable to owners was ¥2,033 million, reversing a loss of ¥2,848 million in Q1 FY2026.

• Ordinary income reached ¥2,028 million, compared to a loss of ¥2,840 million in the prior year.

Financial highlights

• Sales increased by ¥629 million year-over-year; operating loss improved by ¥1,129 million.

• EBITDA nearly broke even at ¥-12 million, a substantial improvement from prior quarters.

• Depreciation for the quarter was ¥352 million, up 83% year-over-year.

• R&D expenses rose 103.9% year-over-year to ¥134 million.

• Comprehensive income for Q1 FY2027 was ¥1,296 million, down from ¥3,913 million in Q1 FY2026.

Outlook and guidance

• IEM business is progressing ahead of H1 forecasts, achieving 84.2% of H1 sales target in Q1.

• Separator business at 28.8% of H1 forecast; recovery expected in H2 as ESS projects ramp up.

• Full-year FY2027 net sales forecast at ¥6,000 million, up 65.2% year-over-year.

• Full-year operating income forecast at ¥2,400 million and ordinary income at ¥4,400 million.

• No dividend is planned for FY2027.