Daido Metal (7245) Q1 2027 earnings summary

Executive summary

• Net sales rose 5.4% year-over-year to ¥35,333 million for the quarter ended June 30, 2026, driven by strong demand in marine, data center, and HEV sectors, as well as new orders from Chinese motorcycle manufacturers.

• Operating profit increased 10.1% year-over-year to ¥2,017 million, aided by price revisions and profitability management despite higher material and labor costs.

• Profit attributable to owners of parent surged 72.3% year-over-year to ¥1,020 million.

• Comprehensive income improved significantly to ¥1,258 million from a loss of ¥441 million a year earlier.

• Full-year performance is expected to align with the initial plan, with continued focus on growth areas, especially data center-related products.

Financial highlights

• Gross profit increased to ¥8,931 million from ¥8,405 million year-over-year.

• Ordinary profit rose 21.8% year-over-year to ¥1,786 million.

• Basic earnings per share increased to ¥21.89 from ¥12.60 year-over-year.

• Net interest-bearing debt decreased by 1.3% to ¥36,891 million.

• Net cash provided by operating activities was ¥3,601 million, up from ¥2,560 million year-over-year.

Outlook and guidance

• FY2026 full-year forecast unchanged: net sales ¥145,000 million (+2.1%), operating profit ¥9,500 million (+13.5%), net profit ¥5,000 million (+13.7%).

• Dividend forecast maintained at ¥36 per share annually.

• Continued investments in data center-related products and production capacity expansion, including a new plant in Mexico.

• Annual dividend forecast raised to ¥36.00 per share from ¥31.00.