Shimadzu (7701) Q1 2027 earnings summary

Executive summary

• Q1 net sales reached ¥130.6B (+10.3% YoY), setting a record for the sixth consecutive year, with operating income at ¥14.3B (+17.1% YoY), both driven by strong core and recurring businesses and favorable currency exchange.

• Ordinary profit surged 63.3% to ¥18.5B, and profit attributable to owners increased 68.3% to ¥13.3B YoY.

• Comprehensive income jumped 190.8% YoY to ¥21.1B, reflecting robust business growth and positive market conditions.

• All major segments reported higher sales; operating profit before amortization of goodwill and intangibles is now the key metric.

• Tescan will be consolidated from Q3, contributing to sales and OP.

Financial highlights

• Net sales: ¥130.6B (+10.3% YoY); operating income: ¥14.3B (+17.1% YoY); ordinary income: ¥18.5B (+63.3% YoY); profit attributable to owners: ¥13.3B (+68.3% YoY).

• Gross profit increased to ¥60.3B from ¥53.3B YoY, with gross margin improvement.

• Basic earnings per share rose to ¥46.14 from ¥27.42 YoY.

• Operating profit before amortization of goodwill was ¥14.6B, up 16.8% YoY.

• Operating margin improved to 10.9% (+0.6pt YoY); FX gains contributed ¥4.6B; R&D expenses were ¥7.0B; CAPEX increased to ¥7.8B.

Outlook and guidance

• Full-year sales forecast raised to ¥620.0B (+10.6% YoY), with operating income at ¥80.0B (+8.5% YoY).

• Ordinary profit forecast at ¥81.0B and profit attributable to owners at ¥59.0B for the fiscal year ending March 31, 2027.

• Operating income before amortization of goodwill and intangibles forecast at ¥85.0B (+13% YoY).

• Tescan consolidation expected to add ¥16.5B in sales and ¥2.8B in OP before amortization.

• Dividend per share forecast increased to ¥70.00.

• Impact from the Middle East situation now expected to be smaller than initially assumed.