Japan Aviation Electronics Industry (6807) Q1 2027 earnings summary

Executive summary

• Q1 FY2026 net sales reached ¥58.3 billion, up 13% year-over-year, driven by strong automotive and industrial demand, but down 5% sequentially from Q4 FY2025.

• Operating profit dropped sharply to ¥0.33 billion, a 78% decrease year-over-year and 89% sequentially, as higher raw material, energy, and labor costs outpaced sales growth.

• Net profit was ¥0.33 billion, down 61% year-over-year and 87% sequentially.

Financial highlights

• Net sales: ¥58.3 billion (up ¥6.6 billion YoY, down ¥2.8 billion QoQ).

• Operating profit: ¥0.33 billion (down ¥1.15 billion YoY, down ¥2.69 billion QoQ).

• Net profit: ¥0.33 billion (down ¥0.52 billion YoY, down ¥2.19 billion QoQ).

• Gross profit for the quarter was ¥7,443 million, down from ¥7,944 million a year earlier.

• Comprehensive income surged to ¥1,765 million from ¥153 million, mainly due to foreign currency translation gains.

Outlook and guidance

• Full-year net sales forecast for FY ending March 31, 2027 is ¥240,000 million, up 3.0% year-over-year.

• Full-year operating profit is projected at ¥9,500 million (up 6.3%), with profit attributable to owners of parent at ¥6,000 million (down 15.1%).

• Dividend forecast for FY27 is ¥50 per share, down from ¥60 in FY26.