Noritz (5943) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 saw domestic sales growth, especially in non-residential, but overseas sales declined due to a weak Chinese market; operating income fell both domestically and overseas, while net profit surged from extraordinary gains on investment securities sales.

• Net sales for Q1 2026 were ¥51,635 million, down 2.3% year-over-year from Q1 2025.

• Operating profit for Q1 2026 was ¥1,678 million, a 16.4% decrease year-over-year.

• Profit attributable to owners of parent fell 29.9% year-over-year to ¥1,517 million.

• Strategic focus remains on high value-added, eco-friendly products, cost competitiveness, and expanding service-driven sectors domestically and overseas.

Financial highlights

• Q1 FY2026 net sales: ¥51.6bn (down ¥1.2bn YoY); domestic: ¥36.6bn (+¥0.4bn), overseas: ¥14.9bn (–¥1.6bn).

• Operating income: ¥1.6bn (–¥0.3bn YoY); domestic: ¥1.4bn (–¥0.1bn), overseas: ¥0.2bn (–¥0.1bn).

• Net income attributable to shareholders: ¥4.4bn (+¥3.0bn YoY), driven by a ¥4.4bn gain on sale of investment securities.

• Comprehensive income for Q1 2026 was ¥4,835 million, compared to a loss of ¥1,906 million in Q1 2025.

• Basic earnings per share for Q1 2026 was ¥30.99, nearly unchanged from ¥30.94 in Q1 2025.

Outlook and guidance

• FY2026 targets: net sales ¥210bn (+¥7.9bn YoY), operating income ¥4.5bn (+¥0.2bn), net income ¥8.6bn (+¥5.2bn), ROE over 6%.

• Domestic business aims for ¥140bn sales, overseas for ¥70bn; both segments targeting higher operating income.

• Full-year 2026 net sales forecast is ¥210,000 million, up 3.9% year-over-year.

• Operating profit for 2026 is projected at ¥4,500 million, a 4.6% increase year-over-year.

• Profit attributable to owners of parent is forecast at ¥8,600 million, up 156.0% year-over-year.