W-SCOPE (6619) Q4 2026 earnings summary

Executive summary

• Full-year sales for FY ending Jan. 2026 were ¥3,630 million, down 11.7% year-over-year due to weak EV demand in Europe and continued low sales volumes in the separator business.

• Operating loss widened to ¥4,919 million from ¥3,911 million year-over-year, with recurring and net losses also increasing significantly.

• Recognized a ¥6,331 million loss on equity-method investment due to poor performance at WCP, and impairment/losses related to WSK and subsidiary share sales.

• Net income attributable to shareholders was ¥3,713 million, compared to a loss of ¥12,465 million last year.

• Comprehensive income reached ¥9,176 million, up from ¥2,429 million year-over-year.

Financial highlights

• Sales for separator business totaled ¥2,210 million (down 7.4% YoY); IEM business sales were ¥1,419 million (up 6.3% YoY).

• EBITDA for FY Jan. 26 was negative ¥3,386 million; depreciation was ¥1,533 million, up 30% YoY.

• R&D expenses rose 65.7% YoY to ¥669 million; CAPEX was ¥1,135 million, up 4% YoY.

• Operating margin improved to 7.2% from -3.2% year-over-year.

• EPS increased to ¥225.88 from ¥67.60 year-over-year.

Outlook and guidance

• FY Jan. 2027 sales expected to rise by ¥2.3 billion YoY, driven by ESS separator launches and steady IEM orders.

• Operating profit planned to improve by ¥2.5 billion YoY due to sales growth and cost reductions.

• Recurring profit expected to recover significantly in H2, with a full-year improvement of ¥6.6 billion YoY, mainly from WCP's ESS sales.

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

• Net income per share forecasted at ¥79.73 for the full year ending January 31, 2027.