Johnson Electric (179) Q1 25/26 earnings summary

Executive summary

• Sales for the June 2025 quarter were US$915 million, down 2% year-over-year, with a US$9 million favorable exchange rate impact.

• APG sales declined due to unfavorable customer mix in China, pricing pressures, and reduced market share among non-domestic OEMs, while IPG saw slight improvement amid mixed regional dynamics.

• The automotive sector is experiencing rapid structural change, with China emerging as the largest and most dynamic EV market and traditional OEMs evolving their strategies.

• Cautious customer behavior, subdued macroeconomic conditions, and global tariff uncertainties are expected to weigh on short-term sales, but new product launches and business developments are anticipated to support growth in the second half.

• Notable shift in APG's China sales mix, with reduced demand from non-domestic brands and growth from domestic brands.

Financial highlights

• Group sales for the June 2025 quarter were US$915 million, down US$20 million year-over-year.

• APG sales declined 4% globally excluding currency, with a 9% drop in Asia-Pacific, 2% growth in EMEA, and 4% drop in the Americas.

• IPG global sales grew 1% year-over-year excluding currency, with EMEA up 14%, Americas down 5%, and Asia-Pacific down 7%.

• APG sales dropped US$23 million (3%), or 4% excluding currency effects; IPG sales increased US$2 million (2%), or 1% excluding currency effects.

• IPG benefited from robust demand for piezo motors in medical and semiconductor applications.

Outlook and guidance

• Short-term sales are expected to remain under pressure due to cautious customer behavior, macroeconomic uncertainty, and global tariff risks.

• Second-half growth is anticipated, supported by new product launches and business development initiatives.