Okuma (6103) Q1 2026 earnings summary

Executive summary

• First quarter FY2025 sales were ¥44,646 million, down 1.5% year-over-year, with operating income at ¥1,599 million, down 47.8%, and net income attributable to owners at ¥1,409 million, down 42.2%.

• Orders received increased 12.2% year-over-year to ¥54,166 million, with backlog orders rising 17% to ¥105,972 million.

• Profitability was pressured by higher material and transportation costs, delayed sales, and sluggish factory utilization.

• Demand for machine tools remained firm among major corporations, but medium- and small-sized businesses were cautious about capital investment.

Financial highlights

• Operating income margin dropped to 3.6% from 6.8% year-over-year.

• Ordinary profit declined 40.4% year-over-year to ¥2,152 million.

• Gross profit for the quarter was ¥13,537 million, down from ¥15,167 million year-over-year.

• Overseas sales accounted for 71.7% of consolidated net sales, slightly down from 72.3% a year earlier.

• Net cash at quarter-end was ¥36.4 billion; capital adequacy ratio stood at 76.3%.

Outlook and guidance

• Full-year net sales forecast remains at ¥230,000 million, with operating profit projected at ¥22,000 million and profit attributable to owners at ¥15,000 million.

• Net income forecasted to rise 56.4% to ¥15,000 million for FY2025.

• Planned dividend of ¥100.0 per share, reflecting a 2-for-1 stock split.

• Demand from growth industries such as aerospace and semiconductor manufacturing equipment is expected to recover in the second half.

• No changes to the previously announced financial results forecast, despite ongoing global uncertainties.