Tokai Rika (6995) Q1 2026 earnings summary

Executive summary

• Achieved record-high first quarter sales driven by increased production at major customers and cost reduction initiatives.

• Operating profit and ordinary profit both increased year-over-year, supported by higher sales and effective cost management.

• Profit attributable to owners of parent declined 31.6% year-over-year due to the absence of prior-year extraordinary gains.

• Comprehensive income fell 50.9% year-over-year, reflecting lower profit and negative foreign currency translation adjustments.

Financial highlights

• FY2026 Q1 sales: ¥152.69bn, up 0.5% year-over-year; operating profit: ¥7.83bn, up 10.0%.

• Ordinary profit: ¥9.43bn, up 3.2% year-over-year; profit attributable to owners: ¥5.18bn, down 31.6%.

• Gross profit increased by ¥963 million year-over-year to ¥20.89bn; SG&A expenses rose by ¥251 million to ¥13.05bn.

• Extraordinary income in the prior year (¥2.27bn) was not repeated; impairment loss of ¥82m recorded this quarter.

• Basic earnings per share for the quarter were ¥60.90, down from ¥89.59 a year earlier.

Outlook and guidance

• Full-year FY2026 forecast remains unchanged due to uncertainties, including potential U.S. tariffs and FX risks.

• FY2026 sales forecast: ¥580.0bn; operating profit forecast: ¥20.0bn; ordinary profit forecast: ¥20.0bn; profit attributable to owners forecast: ¥14.0bn.

• Annual dividend forecast is ¥95.00 per share, unchanged from the previous year.

• USD/JPY and EUR/JPY rates assumed at ¥135 and ¥155, respectively.