Citizen Watch Co. (7762) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2025 were ¥75.2B, down 0.8% year-over-year, with Devices and Components decline offset by Machine Tools growth.

• Operating profit rose 0.3% year-over-year to ¥4.7B; ordinary profit fell 16.1% to ¥6.2B due to lower foreign exchange gains.

• Profit attributable to owners of parent increased 7.5% year-over-year to ¥9.2B, aided by a gain on sale of investment securities.

• Segment reorganization implemented, now reporting Watches, Machine Tools, and Devices and Components.

Financial highlights

• Gross profit for the quarter was ¥32.5B, up from ¥32.2B year-over-year.

• Basic earnings per share rose to ¥37.67 from ¥35.04 year-over-year.

• Comprehensive income dropped to ¥4.0B from ¥15.5B year-over-year, mainly due to negative foreign currency translation and valuation differences.

• Total assets increased to ¥418.9B from ¥415.6B at the previous fiscal year-end.

• Net assets decreased to ¥262.5B from ¥264.1B at the previous fiscal year-end.

Outlook and guidance

• Full-year net sales forecast at ¥318.0B, up 0.4% year-over-year; operating profit projected at ¥20.0B, down 2.9%.

• Net income forecast for the year is ¥20.0B, down 16.2% year-over-year; EPS expected at ¥82.01.

• Annual dividend per share forecasted at 47 yen, a 2 yen increase from the previous year.

• No changes to previously announced earnings or dividend forecasts.