Nakanishi (7716) Q1 2026 earnings summary

Executive summary

• Achieved double-digit sales growth across all segments, with consolidated net sales up 21.3% year-over-year and EBITDA up 23.6% year-over-year.

• Operating profit rose 39.1% to ¥4,675M, and net income attributable to owners of parent soared 803.9% to ¥3,980M, driven by higher revenues, improved forex gains, and absence of prior-year tax impacts.

• Comprehensive income reached ¥4,652M, reversing a loss in the prior year.

• Acra Cut and Intech acquisitions completed; their results to be consolidated from Q2 onward.

Financial highlights

• Q1 net sales: ¥22,488M (+21.3% YoY); gross profit: ¥12,935M (+16.8% YoY); EBITDA: ¥5,876M (+23.6% YoY); operating profit: ¥4,675M (+39.1% YoY); ordinary profit: ¥5,548M (+111.2% YoY); net profit: ¥3,980M (+803.9% YoY).

• EPS: ¥47.93 vs. ¥5.23 YoY.

• Gross margin declined by 2.2pt YoY due to higher unrealized profits and U.S. tariffs.

• Forex impact on net sales: +¥1,031M YoY.

• Total assets increased to ¥165,775M, and net assets rose to ¥116,401M.

Outlook and guidance

• FY2026 net sales forecast: ¥90,185M (+11.1% YoY); EBITDA: ¥21,854M (+9.8% YoY); operating income: ¥16,215M (+15.1% YoY); net profit: ¥11,193M.

• Record-high sales expected for the sixth consecutive year, with growth in all business segments.

• Q2 net sales forecast: ¥44,374M (+13.2% YoY); net profit: ¥5,308M (+51.2% YoY).

• Dividend forecast for FY2026 is ¥60 per share, up from ¥54 in FY2025.

• No changes to previously announced forecasts.