CTI Engineering Co (9621) Q1 2026 earnings summary

Executive summary

• Orders received rose 8.9% year-over-year to JPY 26,156 million, reflecting strong business portfolio transformation and robust demand in both domestic and overseas markets.

• Sales increased 6.2% year-over-year to JPY 31,977 million, driven by robust domestic business and project completions.

• Operating income grew 12.1% year-over-year to JPY 6,571 million, with improved efficiency and a lower cost of sales ratio.

• Net income attributable to owners of the parent rose 14.6% year-over-year to JPY 4,460 million.

• The company is executing its Mid-Term Management Plan 2027, focusing on business portfolio transformation, employee engagement, productivity, and governance.

Financial highlights

• Orders received: JPY 26,156 million (+8.9% YoY); sales: JPY 31,977 million (+6.2% YoY).

• Operating income: JPY 6,571 million (+12.1% YoY); operating margin: 20.6% (+1.1pt YoY).

• Net income: JPY 4,460 million (+14.6% YoY); ordinary profit: JPY 6,616 million (+13.3% YoY).

• Gross profit for Q1 2026 was JPY 11,737 million, up from JPY 10,577 million year-over-year.

• Comprehensive income rose 24.8% year-over-year to JPY 4,474 million.

Outlook and guidance

• FY2026 plan targets JPY 105,000 million in both orders received and sales, JPY 10,500 million in operating income, and JPY 7,000 million in net income.

• Mid-Term Management Plan 2027 aims for sales of JPY 110 billion, operating income of JPY 12 billion, and ROE of at least 12%.

• No revision to the previously announced forecast.

• Focus on strengthening workforce, improving productivity, and expanding private and overseas markets.