Daido Metal (7245) Q1 2026 earnings summary

Executive summary

• Net sales rose 0.9% year-over-year to JPY 33,516 million for the quarter ended June 2025, with operating profit up 31.9% to JPY 1,832 million and net profit up 26.8% to JPY 592 million.

• Ordinary profit grew 8.5% to JPY 1,467 million.

• Comprehensive income turned negative at JPY (441) million, mainly due to foreign currency translation adjustments.

• Profit growth was driven by increased sales, manufacturing improvements, and reduced air freight costs, offsetting higher labor and depreciation expenses.

Financial highlights

• Operating margin improved by 1.3 points to 5.5% year-over-year; net profit margin increased by 0.4 points to 1.8%.

• Gross profit increased to JPY 8,405 million from JPY 7,926 million year-over-year.

• Basic earnings per share rose to JPY 12.60 from JPY 9.91 year-over-year.

• Net interest-bearing debt increased 5.5% to JPY 37,367 million.

• Net assets to total assets ratio at 36.7%, up 0.2 points year-over-year.

Outlook and guidance

• FY2025 net sales forecast at JPY 134,000 million, with operating profit expected to rise 12.8% to JPY 8,000 million.

• Net profit forecast to increase 28.7% to JPY 3,500 million; operating margin projected to reach 6.0%.

• Full-year basic earnings per share forecasted at JPY 74.42.

• Annual dividend forecast raised to JPY 24 per share.

• No changes to previously announced FY2025 forecasts or dividend guidance.