Mitsui High-tec (6966) Q1 2026 earnings summary

Executive summary

• Revenue/net sales increased 8.4% year-over-year to ¥54,677 million, driven by strong EV motor core demand, but operating profit declined 12.6% to ¥3,469 million due to higher costs and weak legacy semiconductor demand.

• Net income dropped 79.7% year-over-year to ¥968 million, with a significant decrease in ordinary profit and profit margin, mainly due to foreign exchange losses.

• The economic environment showed gradual recovery, but uncertainty persists due to US policy trends, a slowing Chinese economy, and instability in the Middle East.

Financial highlights

• Operating profit was ¥3,469 million, down 12.6% year-over-year; EBITDA fell 4.5% to ¥7,006 million.

• Ordinary profit fell 77.1% to ¥1,480 million, impacted by foreign exchange losses.

• Comprehensive income turned negative at ¥(2,939) million, mainly due to foreign currency translation adjustment.

• Capital expenditures decreased 22.4% year-over-year to ¥7,455 million; depreciation rose 5.1% to ¥3,537 million.

• Compared to the previous quarter, revenue fell 3.5% and operating profit dropped 23.8%.

Outlook and guidance

• Full-year forecast: net sales ¥230,000 million (+7.0% YoY), operating profit ¥13,000 million (–18.8%), ordinary profit ¥12,500 million (–26.2%), net income ¥9,000 million (–26.3%), EPS ¥49.25.

• Dividend forecast for FY2026 is ¥18.00 per share.

• Second quarter is expected to see further declines in revenue and profit due to lower raw material prices and increased upfront investment costs.

• The company maintains its previously announced full-year guidance, but U.S. tariff policy and other uncertainties require close monitoring.