SMC (6273) Q1 2027 earnings summary

Executive summary

• Net sales for FY26 Q1 reached ¥270.9 billion, up 35.4% year-over-year and 16.5% sequentially, driven by strong demand in semiconductor and automation sectors.

• Operating profit rose to ¥73.9 billion, a 66.4% increase year-over-year and 39.6% sequentially, with ordinary profit up 86.9% to ¥91.7 billion, reflecting higher sales and foreign exchange gains.

• Net profit nearly doubled year-over-year to ¥67.8 billion, with a 48.6% increase from the previous quarter.

• Comprehensive income reached ¥88.8 billion, up 258.3% year-over-year, mainly due to foreign currency translation gains.

Financial highlights

• Gross profit margin was 53.2%, up from 44.3% year-over-year, with gross profit for the quarter at ¥126.9 billion.

• Basic earnings per share doubled to ¥1,076.01 from ¥543.79 year-over-year.

• Total assets increased to ¥2,368.6 billion as of June 30, 2026, up 2.5% from March 31, 2026.

• Net assets rose to ¥2,154.8 billion, with an equity-to-asset ratio of 91.0%.

• Cash and deposits rose by ¥47.2 billion to ¥711.0 billion.

Outlook and guidance

• FY26 net sales forecast is ¥1,000.0 billion, with operating profit projected at ¥219.0 billion and profit attributable to owners of parent of ¥170.0 billion.

• Orders in July indicate continued strength in semiconductor/electric and food sectors, especially in Greater China.

• Annual dividend forecast maintained at ¥1,000 per share.

• No changes to previously announced forecasts.