TOWA (6315) Q1 2027 earnings summary

Executive summary

• Orders reached a record high of ¥21.81 billion, up 109.1% year-over-year, driven by expanding AI server and data center investments.

• Net sales for the quarter doubled year-over-year to ¥16.18 billion, mainly from memory-related and AI/data center projects.

• Profitability returned at all stages, with operating profit at ¥2.21 billion versus a loss last year.

• Net profit attributable to owners was ¥1.65 billion, reversing a loss in the prior year.

Financial highlights

• Operating profit margin improved to 13.7% from negative in the prior year.

• Gross profit for the quarter was ¥5.45 billion, up from ¥2.15 billion year-over-year.

• Comprehensive income surged to ¥6.41 billion from ¥351 million, mainly due to valuation gains on securities.

• Total assets increased to ¥116.41 billion from ¥106.27 billion at the previous fiscal year-end.

• Equity-to-asset ratio decreased to 64.9% from 66.4% sequentially.

Outlook and guidance

• Full-year net sales forecast raised to ¥64.0 billion, up 17.7% year-over-year.

• Operating profit expected to reach ¥10.24 billion, a 48% increase year-over-year.

• Profit attributable to owners of parent is forecast at ¥7.0 billion, up 52.4% year-over-year.

• Profitability improvement targeted through high-value-added products and pricing initiatives.

• Order forecasts discontinued due to heightened volatility and limited visibility.