Nippon Gear (6356) Q1 2027 earnings summary

Executive summary

• Revenue for Q1 FY2027 was ¥2,060 million, a 0.4% decrease year-over-year, while operating profit rose 30.9% to ¥495 million and net profit increased 30.6% to ¥351 million.

• Orders received grew 12.1% year-over-year to ¥3,854 million, with order backlog up 31.5% from the previous fiscal year-end.

• The business environment saw moderate recovery in domestic demand but was challenged by rising resource prices, inflation, and global uncertainties.

Financial highlights

• Operating profit margin improved due to lower cost of sales and a significant reduction in SG&A expenses, partly from favorable actuarial differences in pension costs.

• Gross profit for Q1 FY2027 was ¥1,003 million, with SG&A at ¥507 million, down 17.9% year-over-year.

• Total assets at quarter-end were ¥17,217 million, with net assets at ¥14,941 million and an equity ratio of 86.8%.

• EPS for the quarter was ¥24.67, up from ¥18.89 a year earlier.

Outlook and guidance

• Full-year revenue is forecast at ¥10,000 million, up 1.2% year-over-year, with net profit projected at ¥1,760 million (up 0.5%).

• No changes to previously announced guidance; dividend forecast remains ¥10 per share for the year.