Mitsui High-tec (6966) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 FY2026 rose 13.2% YoY to JPY 61,886 million, with operating profit up 27.8% to JPY 4,433 million and net profit up 373.2% to JPY 4,584 million, driven by strong demand in automotive and semiconductor sectors and foreign exchange gains.

• Electrical Parts (Motor Core) saw increased sales and profit, mainly from hybrid and EV vehicle demand.

• Electronic Parts (Leadframe) benefited from customer inventory build-up, yen depreciation, and higher precious metal prices, though delayed price pass-through was a negative factor.

• Comprehensive income improved to JPY 6,539 million from a loss of JPY 2,939 million in the prior year period.

Financial highlights

• Q1 FY2026 net sales: JPY 61,886 million, up 13.2% YoY and 11.8% QoQ.

• Q1 FY2026 operating profit: JPY 4,433 million, up 27.8% YoY and 29.6% QoQ.

• Net profit: JPY 4,584 million, up 373.2% YoY.

• Ordinary profit surged to JPY 5,891 million, up 297.9% YoY, mainly due to FX gains.

• Basic EPS rose to JPY 25.09 from JPY 5.30 YoY.

Outlook and guidance

• Full-year forecast revised upward: net sales JPY 254.0 billion (+16.3% YoY), operating profit JPY 14.5 billion (+14.6% YoY), net profit JPY 10.0 billion (+217.3% YoY), basic EPS JPY 54.72.

• Dividend forecast for FY2027 raised to JPY 19.00 per share (from JPY 18.00 in FY2026).

• Q2 sales and operating profit expected to increase QoQ, but second-half profit to decline due to higher costs and strong yen.

• Outlook for demand in automotive and semiconductor industries remains uncertain.