Hi-Lex (7279) Q1 2026 earnings summary

Executive summary

• Net sales rose 36.2% year-over-year to ¥105,571 million, mainly due to the consolidation of ACT and growth in the Americas and Europe.

• Operating profit declined 12.3% year-over-year to ¥1,189 million, impacted by tariff recovery delays in the Americas, temporary issues in Mexico, and lower sales in Korea.

• Net income surged to ¥33,355 million, driven by a ¥6.7 billion gain on sale of investment securities and a ¥26.8 billion gain from bargain purchase.

• Ordinary profit increased 37.7% year-over-year to ¥2,431 million.

• Comprehensive income jumped 314.8% year-over-year to ¥40,884 million.

Financial highlights

• Net sales: ¥105,571 million (up ¥28,068 million, +36.2% year-over-year).

• Operating profit: ¥1,189 million (down ¥166 million, -12.3% year-over-year).

• Ordinary profit: ¥2,431 million (up ¥666 million, +37.7% year-over-year).

• Net income: ¥33,355 million (up ¥32,604 million, +4,335.8% year-over-year).

• Gross profit increased to ¥13,307 million from ¥9,021 million year-over-year.

• Basic earnings per share rose sharply to ¥902.36 from ¥20.04 year-over-year.

• Total assets increased to ¥370,711 million from ¥276,997 million as of October 31, 2025.

• Equity-to-asset ratio declined to 57.8% from 63.2% as of October 31, 2025.

Outlook and guidance

• FY2026 forecast: Net sales ¥401 billion, operating profit ¥5.4 billion, ordinary profit ¥7.4 billion, net income ¥36.85 billion.

• Forecast includes ACT results and a ¥26.8 billion gain on bargain purchase.

• Full-year operating profit projected at ¥5,400 million, up 59.2% year-over-year.

• Annual dividend forecast raised to ¥80.00 per share, including a commemorative dividend for the 80th anniversary.

• Exchange rate assumptions: ¥148/$, ¥21/CNY, ¥165/€.