TOKYO KEIKI (7721) Q1 2027 earnings summary

Executive summary

• Q1 FY2026 saw net sales rise 9.9% YoY to ¥11,594 million, with operating loss improving to ¥248 million from ¥326 million and net profit turning positive at ¥31 million, aided by gains on sales of cross-shareholdings.

• Strong performance in Marine Systems and Defense & Communications Equipment drove YoY growth, while Fluid Measurement Equipment and Others segments saw declines.

• The order backlog at the end of Q1 reached a record high, reflecting robust demand across all segments.

Financial highlights

• Q1 net sales rose 9.9% YoY to ¥11,594 million; operating loss improved to ¥248 million from ¥326 million; ordinary profit improved by ¥244 million YoY; net profit turned positive at ¥31 million.

• Comprehensive income was ¥359 million (vs. ¥-249 million YoY); basic EPS was ¥1.90 (vs. ¥-10.75 YoY).

• Q1 order backlog increased 9.3% YoY to ¥63,921 million.

Outlook and guidance

• Full-year FY2026 earnings forecast revised upward: net sales to ¥70,000 million (+2.5% vs initial, +14.4% YoY), operating profit to ¥7,000 million (+9.4% vs initial, +30.6% YoY), profit attributable to owners of parent ¥5,400 million (+34.8% YoY), EPS ¥328.61.

• Operating profit margin expected to rise to 10.0% from 8.8% in FY2025.

• Exchange rate assumption revised to ¥159/USD from Q2 onward.

• Dividend forecast raised to ¥48 per share for FY ending March 2027.