Ohashi Technica (7628) Q4 2026 earnings summary

Executive summary

• Net sales increased by 2.3% year-over-year to ¥40,918 million for FY2026, driven by new orders despite production cutbacks at key clients in Japan and China, with both domestic and overseas sales contributing to growth.

• Operating profit rose 36.1% year-over-year to ¥2,426 million, supported by strong overseas performance, improved gross margin, productivity gains, and reduced SG&A expenses.

• Profit attributable to owners of parent grew 36.9% year-over-year to ¥2,084 million, aided by a gain on sale of investment securities and impairment losses in China.

Financial highlights

• Domestic sales rose 3.3% year-over-year to ¥19,943 million; overseas sales up 1.3% to ¥20,974 million.

• Ordinary profit increased 25.6% year-over-year to ¥2,966 million.

• Earnings per share (EPS) increased 40.4% year-over-year to ¥81.40, adjusted for a 2-for-1 stock split.

• Equity ratio improved to 84.2% from 80.4% year-over-year.

• Cash and cash equivalents at year-end were ¥15,118 million, down ¥1,897 million from the previous year.

Outlook and guidance

• FY2027 net sales forecasted to rise 5.1% to ¥43,000 million, with overseas sales expected to grow 9.2%.

• Operating profit projected to increase 5.1% to ¥2,550 million; profit attributable to owners of parent to reach ¥2,100 million.

• Ordinary profit forecasted at ¥3,000 million (+1.1%).

• Annual dividend forecasted at ¥45.00 per share (¥90.00 pre-stock split), with a payout ratio of 55.0%.

• Capital investment planned at ¥2,500 million for FY2027.

• Guidance assumes a quick resolution to geopolitical tensions and continued sluggish production in China and ASEAN.