Makino Milling Machine (6135) Q1 2027 earnings summary

Executive summary

• Achieved record-high quarterly orders and significant growth in net sales and operating income year-over-year for FY2026 1Q, with net sales rising 25.9% to ¥69,770 million, operating profit up 137.1% to ¥7,590 million, and profit attributable to owners up 353.7% to ¥5,661 million.

• Orders increased across all major regions and industries, with notable strength in aerospace and parts machining.

• Progressed on strategic initiatives, including new product launches and regional expansion, especially in India and Asia.

• Comprehensive income reached ¥13,502 million, a significant turnaround from a loss in the prior year period.

Financial highlights

• Net sales rose to 69,770 mil JPY in FY2026 1Q, up from 55,397 mil JPY in FY2025 1Q.

• Operating income increased to 7,590 mil JPY (10.9% margin), compared to 3,201 mil JPY (5.8%) year-over-year.

• Net income attributable to owners reached 5,661 mil JPY (8.1% margin), up from 1,247 mil JPY (2.3%).

• Gross profit increased from ¥15,883 million to ¥23,470 million year-over-year.

• Ordinary profit more than doubled to ¥8,175 million from ¥3,684 million.

• Exchange rate fluctuations contributed 6,312 mil JPY to sales and 1,298 mil JPY to operating income.

• Basic earnings per share rose to ¥242.02 from ¥53.35 year-over-year.

Outlook and guidance

• FY2026 full-year net sales forecast at 276,000 mil JPY, with operating income of 27,600 mil JPY (10.0% margin).

• Net income for the year projected at 22,100 mil JPY (8.0% margin).

• Full-year net sales forecast for FY ending March 31, 2027 is ¥276,000 million, up 5.7% year-over-year.

• Operating profit forecasted at ¥27,600 million, up 10.2% year-over-year; profit attributable to owners of parent expected to reach ¥22,100 million, up 5.3%.

• Basic earnings per share forecasted at ¥188.96, reflecting a 5-for-1 stock split; without the split, EPS would be ¥944.78.

• Targeting an average total payout ratio of 60% over five years, with stable dividends and flexible share buybacks.