SEIKO GROUP (8050) Q1 2027 earnings summary

Executive summary

• Q1 FY2026 net sales reached ¥99.1 billion, up 28.5% year-over-year, with operating profit at ¥15.4 billion, up 88.8% year-over-year, and ordinary profit at ¥16.5 billion, up 94.3% year-over-year, driven by strong performance in EVS and DS domains.

• Profit attributable to owners of parent increased 76.3% year-over-year to ¥11.2 billion, with basic EPS at ¥136.99, reflecting a 2-for-1 share split effective April 1, 2026.

• Comprehensive income surged to ¥18.4 billion from ¥2.2 billion a year earlier, driven by strong profit and improved other comprehensive income.

• Full-year FY2026 forecast revised upward: net sales expected at ¥375.0 billion (+¥17.0 billion from previous forecast), operating profit at ¥41.0 billion (+¥7.5 billion), and annual dividend forecast raised to ¥105 per share.

Financial highlights

• Gross profit for Q1 FY2026 was ¥47.8 billion (+33.8% YoY), with gross margin improving by 1.9pt to 48.2%.

• Ordinary profit rose to ¥16.5 billion (+94.3% YoY), and profit attributable to owners of parent increased to ¥11.2 billion (+76.3% YoY).

• Total assets grew to ¥407.2 billion as of June 30, 2026, up from ¥383.9 billion at the previous fiscal year-end.

• Net assets rose to ¥191.9 billion, with an equity-to-asset ratio of 46.7%.

• Dividend for the fiscal year ending March 31, 2027, is forecast at ¥105.00 per share (post-split basis: ¥52.50 interim, ¥52.50 year-end).

Outlook and guidance

• FY2026 net sales forecast revised to ¥375.0 billion (+4.7% vs previous), operating profit to ¥41.0 billion (+22.4% vs previous), and ordinary profit to ¥41.5 billion.

• Profit attributable to owners of parent forecast at ¥28.0 billion (up 27.4% YoY), with basic EPS projected at ¥342.50.

• Watches Business and DS Domain forecasts revised upward for both revenue and operating profit.

• Expected impact of U.S. tariff refund is approx. ¥2.2 billion for the year.