MISUMI Group (9962) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2025 were ¥99,368 million, a 0.2% decrease year-over-year, with operating income down 18.6% and net income down 22.0%, mainly due to Fictiv acquisition and related costs, tariffs, and Forex impact.

• Overseas sales grew 0.6% year-over-year, driven by China, while Japan sales declined 1.2% amid weak automotive demand and tariff effects.

• Digital initiatives and product innovations offset some negative impacts, supporting sales volume increases.

• Profitability was impacted by continued growth investments, foreign exchange effects, and M&A-related expenses.

• The acquisition of Fictiv Inc. and subsidiaries was completed in June 2025, expanding digital and custom component procurement capabilities.

Financial highlights

• FY25 1Q net sales: ¥99,368 million (-0.2% YoY); operating income: ¥9,627 million (-18.6% YoY post-Fictiv consolidation); net income: ¥7,219 million (-22.0% YoY post-Fictiv consolidation).

• Ordinary income fell 20.5% to ¥10,272 million; comprehensive income dropped to ¥4,092 million from ¥22,815 million YoY.

• Operating margin declined to 9.7% from 11.9% year-over-year.

• Cash and cash equivalents at quarter-end were ¥92,036 million, a decrease of ¥36,222 million from the previous year-end.

• Fictiv acquisition and M&A-related costs significantly impacted profitability.

Outlook and guidance

• Full-year FY2026 net sales forecast revised to ¥422,000 million (+5.0% YoY), with operating income of ¥42,900 million (+2.6% YoY) and net income of ¥30,800 million (-15.7% YoY), reflecting Fictiv-related costs and goodwill amortization.

• Forecasts reflect the consolidation of Fictiv Inc. and current demand/exchange rate trends; earnings per share projected at ¥112.12.

• Dividend forecast for FY2026 revised to ¥39.25 per share.

• Overseas sales projected to rise 8.0% YoY, with Japan up 1.1% YoY.