Japan Elevator Service (6544) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 FY27 rose 17.5% year-over-year to ¥15,778 million, with operating profit up 21.5% to ¥3,044 million and profit attributable to owners of parent up 19.6% to ¥1,924 million.

• Domestic maintenance contracts surpassed 130,000 units, with a net increase of 4,310 units year-over-year, reflecting robust sales efforts and business expansion.

• Growth was driven by strong maintenance contracts and significant expansion in modernization business, supported by improved sales structure and productivity initiatives.

• Gross profit margin remained high due to increased unit prices and productivity improvements, while SG&A ratio declined to 19.5%.

• Operating profit margin before goodwill amortization improved to 19.7%.

Financial highlights

• Maintenance and repair business net sales reached ¥9,186 million (up 10.5% YoY); modernization business net sales were ¥6,246 million (up 30.4% YoY).

• Gross profit increased to ¥6,126 million from ¥5,298 million year-over-year.

• EPS increased 19.2% to ¥10.76, reflecting a two-for-one stock split.

• Comprehensive income for Q1 FY27 was ¥1,942 million, up 20.8% year-over-year.

• Ordinary profit grew 20.3% to ¥3,024 million.

Outlook and guidance

• Full-year forecast remains unchanged, with expectations for record-high revenue driven by expansion in maintenance and modernization shipments.

• Operating profit margin before amortization is projected to exceed 20% for the fiscal year.

• Both sales and profits are expected to reach new highs, supported by productivity improvements and SG&A control.

• Full-year FY27 forecast: net sales of ¥65,000 million (up 12.8%), operating profit of ¥13,000 million (up 18.1%), and profit attributable to owners of parent of ¥8,200 million (up 12.0%).

• Earnings per share for the full year projected at ¥45.87.