Azbil (6845) Q1 2026 earnings summary

Executive summary

• Net sales and orders declined year-over-year due to the transfer of Azbil Telstar (ATL), but operating income rose significantly, driven by higher profits in BA and AA segments.

• Dividend is planned to increase for the eleventh consecutive year, with ongoing share repurchases and investments in human capital.

• Medium-term plan (FY2025–FY2027) targets sales and profitability growth, emphasizing sustainability and human capital investment.

• Net income attributable to owners increased 6.2% to ¥5.2B, despite a prior-year gain on sale of investments.

• Orders received declined 6.2% to ¥89.8B, primarily from the LA segment.

Financial highlights

• Q1 FY2025 orders received: ¥89.7B (down ¥5.9B, -6.2% YoY); net sales: ¥62.0B (down ¥3.4B, -5.3% YoY).

• Operating income: ¥7.0B (up ¥1.2B, +22.1% YoY); margin improved to 11.4% (+2.6pp YoY).

• Net income attributable to owners: ¥5.1B (up ¥0.3B, +6.2% YoY); margin 8.4% (+0.9pp YoY).

• Gross margin improved to 45.7% (+4.1pp YoY).

• Shareholders’ equity ratio rose to 76.5% (+1.2pp from March 2025).

Outlook and guidance

• FY2025 net sales forecast: ¥297.0B (down ¥3.3B, -1.1% YoY); operating income: ¥43.0B (up ¥1.5B, +3.6% YoY).

• Net income expected to decrease due to absence of prior year’s extraordinary gain from ATL sale.

• BA and AA segments forecasted to grow in sales and profit; LA segment to decline due to ATL transfer.

• Dividend forecast at ¥26.00 per share for FY2025, unchanged from prior guidance.