Daiichi Jitsugyo Co (8059) investor relations material

Executive summary

• Net sales for Q1 FY2026 were ¥41.2 billion, down 16.7% year-over-year, with operating income at ¥1.1 billion, down 57.7% year-over-year, and profit attributable to owners at ¥1.8 billion, up 0.9% year-over-year, in line with expectations due to delivery timing.

• Orders received reached ¥62.9 billion, up 36.5% year-over-year, driven by strong demand in AI semiconductors and data centers, with a growing order backlog.

• Gross profit margin improved by 1 percentage point to 18.3%, reflecting a better project mix and high-value-added services.

• Comprehensive income surged 124.3% year-over-year to ¥4,504 million, driven by significant gains in other comprehensive income.

• Overseas sales declined in the Americas due to a North American EV market slowdown, but increased in Europe, India, and China.

Financial highlights

• Net sales: ¥41.2 billion (−16.7% YoY); Operating income: ¥1.1 billion (−57.7% YoY); Ordinary income: ¥1.3 billion (−48.1% YoY); Profit attributable to owners: ¥1.8 billion (+0.9% YoY).

• Orders received: ¥62.9 billion (+36.5% YoY); Progress rates: 19.6% for net sales, 8.8% for operating income.

• Gross profit margin: 18.3% (+1pt YoY); Gross profit: ¥7,550 million.

• Basic earnings per share for the quarter was ¥55.26, up from ¥54.74 in the prior year.

• Total assets increased to ¥184,296 million as of June 30, 2026, from ¥175,639 million at March 31, 2026.

Outlook and guidance

• FY2026 forecast: Net sales ¥210.0 billion, operating income ¥12.0 billion; forecasts unchanged due to expected concentration of deliveries in later quarters.

• AI data center-related orders expected to exceed ¥20.0 billion in FY2026, more than triple the previous year.

• Operating profit is projected at ¥12,000 million (down 12.4%), ordinary profit at ¥12,400 million (down 13.6%), and profit attributable to owners at ¥9,400 million (down 5.5%).

• Basic earnings per share for the year is forecast at ¥294.79.

• Increased SG&A from investment in human capital and growth areas, aiming to enhance medium- to long-term earnings.