NSK (6471) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 sales declined 2.4% year-over-year to ¥195.8bn, mainly due to a stronger yen and global economic uncertainties.

• Operating income dropped 18.4% year-over-year to ¥4.8bn; net income attributable to owners fell over 43% to ¥1.1bn.

• No discontinued operations in the quarter, following the sale of the Indian steering business in September 2024.

• Structural reforms, especially in Europe, are progressing as planned, and US tariff costs are being transferred to sales prices.

Financial highlights

• Sales: ¥195.8bn (down 2.4% year-over-year); operating income: ¥4.8bn (down 18.4%); net income: ¥1.1bn (down over 43%).

• Gross profit for the quarter was ¥42.3bn, down from ¥43.3bn year-over-year.

• Basic earnings per share dropped to ¥2.22 from ¥3.89 year-over-year.

• Total comprehensive income fell to ¥340m from ¥23.9bn year-over-year, mainly due to negative exchange differences.

• Exchange rate fluctuations had a significant negative impact, with the yen strengthening against major currencies.

Outlook and guidance

• Full-year FY2025 forecast unchanged: sales ¥760.0bn (down 4.6%), operating income ¥22.0bn (down 22.7%), adjusted operating income ¥30.5bn (down 16.2%).

• Net income forecast at ¥7.0bn, down 34.3% year-over-year.

• Full-year dividend plan maintained at ¥34/share.

• Steering Business consolidation effective September 2025 will be reflected in Q2 forecast update; impact of planned acquisition under assessment.

• Business environment expected to remain flat year-over-year, with cost increases from tariffs to be fully passed on to sales prices.