Toho Zinc Co (5707) Q1 2027 earnings summary

Executive summary

• Net sales for the three months ended June 30, 2026, rose 15.7% year-over-year to ¥31,104 million, with a return to profitability as profit attributable to owners of parent reached ¥259 million compared to a loss of ¥1,111 million in the prior year.

• EBITDA (excluding inventory valuation losses) was ¥1.5 billion, and comprehensive income improved significantly to ¥3,652 million from a loss of ¥1,178 million year-over-year.

• Progress toward full-year forecast is around 20% for EBITDA and ordinary profit, with the forecast unchanged.

• Net assets improved due to profitability and hedging gains, despite a recent decline in silver prices.

• Business structure transformation is underway to establish an earnings base less dependent on external conditions.

Financial highlights

• Net sales rose to ¥31.1 billion, up from ¥26.9 billion year over year.

• EBITDA (excluding inventory valuation losses) was ¥1.5 billion, with inventory valuation losses at approximately ¥1.4 billion.

• Net income improved to ¥260 million from a loss of ¥1.11 billion year over year.

• Gross profit increased to ¥1,003 million from ¥648 million year-over-year.

• Basic earnings per share was ¥6.67, up from a loss of ¥37.64 per share in the prior year.

Outlook and guidance

• Full-year net sales forecast is ¥178,500 million, up 42.2% year-over-year.

• Operating profit forecast for the year is ¥6,700 million, with profit attributable to owners of parent expected at ¥3,450 million, down 27.9% year-over-year.

• Basic earnings per share for the full year is projected at ¥116.07.

• Progress toward full-year EBITDA and ordinary profit targets is approximately 20%.

• FY2026 assumptions: lead at $1,900/ton, silver at $80/toz, and USD/JPY at 160.