NTN (6472) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 FY2027 were ¥212,279 million, up 6.7% year-over-year, driven by price pass-on measures, cost reductions, and steady demand in industrial machinery and automotive sectors, with aftermarket sales rising to ¥39.6 billion and their ratio increasing from 18% to 19%.

• Operating income rose 19.2% to ¥8,319 million, with an operating margin of 3.9%, up 0.4 points year-over-year.

• Ordinary income increased to ¥6,350 million, up 57.5% year-over-year, and profit attributable to owners of parent grew 61.9% to ¥1,928 million.

• Comprehensive income surged to ¥6,880 million, a 769.8% increase year-over-year.

• Operating income benefited from selling price improvements and structural reforms.

Financial highlights

• Gross profit for the quarter was ¥40,757 million, up from ¥36,045 million year-over-year.

• Net income per share was ¥3.24, compared to ¥2.25 in the prior year.

• Free cash flow for Q1 was ¥14.7 billion, up ¥3.9 billion year-over-year.

• Cash and cash equivalents at quarter-end were ¥125,160 million, down ¥6,095 million from the previous fiscal year-end.

• Net cash provided by operating activities was ¥26,457 million, up 42.2% year-over-year.

Outlook and guidance

• Full-year FY2027 guidance: net sales ¥810,000 million (+2.0% YoY), operating income ¥33,000 million (+6.3% YoY), ordinary income ¥21,000 million (–10.6% YoY), profit attributable to owners of parent ¥15,000 million (+16.5% YoY), EPS ¥25.23.

• No revisions to previously announced earnings or dividend forecasts.

• Inventory is forecast to decrease to ¥220.0 billion by March 2027, with an improved turnover ratio of 3.7 times.