Yamaura (1780) Q1 2027 earnings summary

Executive summary

• Revenue for Q1 FY2026 was ¥8.216 billion, down ¥215 million or 2.5% year-over-year; operating income was ¥753 million, down ¥73 million or 8.9%; ordinary income was ¥812 million, down ¥61 million or 6.9%; net income attributable to parent was ¥551 million, down ¥16 million or 2.8%.

• The decline in operating income was mainly due to the recording of stock-based compensation, while gross profit improved year-over-year.

• Despite Middle East instability, Japan's economy showed moderate recovery, driven by AI, semiconductors, data centers, and resilient private consumption.

• Construction investment remained steady, with increased orders in manufacturing, transportation, hydroelectric, and public projects.

• Revenue and profit recognition tend to be uneven within the fiscal year; focus remains on strengthening competitiveness and achieving full-year targets.

Financial highlights

• Gross profit for the quarter was ¥1,524 million, up from ¥1,491 million year-over-year.

• Comprehensive income rose 17.5% year-over-year to ¥741 million.

• Selling, general, and administrative expenses rose by ¥107 million, reflecting investment in human capital for future growth.

• Cash and deposits increased by ¥740 million due to improved collection of accounts receivable.

• Net assets at quarter-end were ¥25,791 million, with a decrease of ¥389 million and an equity ratio of 71.1%.

Outlook and guidance

• Full-year net sales forecast at ¥41,126 million, up 1.5% year-over-year; operating profit expected to rise 13.3% to ¥3,694 million; profit attributable to owners of parent projected at ¥2,714 million, up 14.2%.

• No changes to previously announced financial forecasts.

• Focus for the remainder of the year is on order acquisition, sales progress, and profit assurance to achieve annual plans.

• Full-year forecast remains cautious, factoring in economic and cost environment changes, but expects steady and sustainable growth.

• Uncertainties remain due to labor shortages, FX risks, and high material costs, but focus remains on business synergies and capturing market needs.