MINEBEA MITSUMI (6479) Q1 2026 earnings summary

Executive summary

• Q1 net sales reached a record high of ¥366.9 billion, up 3.2% year-on-year but down 2.1% quarter-on-quarter, driven by strong demand in core businesses despite FX and tariff headwinds; operating income was ¥17.4 billion, down 7.8% year-on-year and 19% quarter-on-quarter; profit attributable to owners was ¥10.9 billion, down 17.2% year-on-year and 35.8% quarter-on-quarter, with both net sales and operating income exceeding budget.

• Comprehensive income dropped sharply to ¥7,643 million from ¥49,851 million a year earlier, mainly due to negative foreign exchange differences.

• All segments outperformed profit expectations, with core businesses achieving record performance and subcore areas recovering from production issues.

• Data center and automotive businesses remained robust, with minimal impact from US reciprocal tariffs and regional disputes.

• Share acquisition from TSUBAKI NAKASHIMA and sale of a UK subsidiary were completed, with minimal impact on consolidated performance.

Financial highlights

• Gross profit was ¥62,113 million, nearly flat year-on-year, while operating income decreased to ¥17,432 million.

• Basic EPS was ¥27.12, down from ¥32.51 in the prior year quarter.

• Inventories increased to ¥370.8 billion, reflecting a strategic buildup for expected sales growth.

• Net interest-bearing debt rose to ¥252.7 billion; cash and cash equivalents increased to ¥255.8 billion.

• Equity ratio attributable to owners declined to 45.0% from 46.9% at year-end.

Outlook and guidance

• Full-year net sales forecast revised to ¥1,500,000–¥1,520,000 million, with operating income expected at ¥90,000–¥100,000 million.

• Profit attributable to owners projected at ¥63,500–¥71,000 million, with basic EPS of ¥158.12–¥176.80.

• Interim dividend forecast raised to ¥25 per share, with a target payout ratio of around 30%.

• 1H forecast remains conservative due to macroeconomic uncertainties and potential indirect tariff impacts.

• Guidance for bearings production targets a record 340 million units per month in the second half, with capacity up to 400 million units.