Koito Manufacturing (7276) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2025 decreased by 4.4% year-over-year to ¥219.7 billion, mainly due to weaker overseas performance and foreign exchange impacts, despite strong domestic sales.

• Operating profit rose 31.6% to ¥11.9 billion, and net profit attributable to owners of parent increased 38.7% to ¥10.1 billion, driven by cost reductions and rationalization.

• Global automotive production increased year-over-year, but Japanese vehicle sales in China and Europe remained weak.

Financial highlights

• Gross profit improved to ¥26.8 billion from ¥21.8 billion year-over-year.

• Ordinary profit increased 6.1% to ¥12.6 billion; EPS rose to ¥35.72 from ¥23.87 year-over-year.

• Comprehensive income dropped to ¥9.2 billion from ¥21.4 billion year-over-year, mainly due to negative foreign currency translation adjustments.

• Cash and cash equivalents at quarter-end rose to ¥146.8 billion, up ¥45.5 billion from the previous fiscal year-end.

Outlook and guidance

• Full-year FY2025 net sales forecast at ¥880.0 billion, up 4.0% year-over-year, but operating profit expected to decline 17.0% to ¥36.0 billion.

• Net profit attributable to owners of parent projected to rise 16.6% to ¥41.0 billion; EPS forecast at ¥79.73.

• Guidance revised downward due to anticipated revenue decline, increased R&D investment, and continued overseas market challenges.