Worth reading
67In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
-10
¥100 million (year-on-year decline in business profit)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationFirst quarter of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥888 100 million+10.7%
Operating profit¥15 100 million-65.0%
Ordinary income¥18 100 million -62.7%profit before tax for the quarter
Net income¥10 100 million -71.3%profit for the quarter attributable to owners of the parent
Gross Profit Margin28.1 %
Operating profit margin1.7 %
Results for the three months of the current quarter
Revenue
¥888 100 million
Business profit
¥20 100 million
Operating profit
¥15 100 million
Profit before quarterly income taxes
¥18 100 million
Quarterly profit attributable to owners of the parent
¥10 100 million
Full-year earnings forecast
Revenue
¥3,640 100 million
Business profit
¥234 100 million
Operating profit
¥206 100 million
Income before taxes
¥210 100 million
Profit for the period attributable to owners of the parent
¥150 100 million
ROE
10.1 %
Annual dividend
¥20
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue exceeded expectations, but business profit fell short of expectationsBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Impact of soaring memory prices¥-14 100 million
- Impact of foreign-exchange hedging¥-6 100 million
- Increase in fixed costs¥-29 100 million
- Benefit from passing through higher prices¥10 100 million
- Higher sales, improved profit margins and other factors¥24 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Foreign-exchange rates used in earnings forecasts
US$1¥155
€1¥180
New initiatives
- Completion of the acquisition of San Luis Aviation, Inc. (SLA) as a subsidiary and entry into the federal government market using the ESChat push-to-talk service
- Beginning to accept orders for Viking Connect equipped with the ESChat app
- Restructuring the sales organization for the radio systems business, concentrating resources on priority markets, and strengthening collaboration with sales partners
- Passing through soaring memory prices and reforming the supply chain and procurement functions
Key KPIsA metric the company considers important as a management benchmark.
- EBITDA¥74 100 millionYear on year against the same period last year-21.7%
- EBITDA margin8.3 %
- Net cash¥25 100 million
- Equity ratio attributable to owners of the parent41.8 %
Segment results
S&S
Revenue
¥185 100 million+1.1%
Business profit
¥1 100 million-92.3%
M&T
Revenue
¥535 100 million+14.8%
Business profit
¥6 100 million-62.3%
ES
Revenue
¥144 100 million+9.2%
Business profit
¥13 100 million+208.5%
Other
Revenue
¥24 100 million+13.9%
Business profit
¥0 100 million-85.4%
Medium-term management plan targets
M&T OEM business (domestic products) sales target
Plan nameVISION2030
Target fiscal yearFiscal 2025 to fiscal 2030
Target valueSales target shown in the graph. The target for fiscal 2030 is approximately ¥60 billion
ProgressOrders equivalent to nearly the full sales target have already been secured
Financial targets
ROE
Forecast for the fiscal year ending March 202710.1 %
ROIC
Actual results for the fiscal year ending March 20268.9 %
Net debt-to-equity ratio
First quarter of the fiscal year ending March 2027-0.02 times
Equity ratio attributable to owners of the parent
First quarter of the fiscal year ending March 202741.8 %
Capital expenditures
¥37 100 million
Annual Dividend
Annual dividend per share¥20
Interim Dividend¥10
Year-end dividend¥10
Payout ratio
Total payout ratio39 % forecast
PolicyTargeting a total payout ratio of 30–45%
Acquisition of treasury shares
Maximum number of shares to be repurchased300 10,000 shares
Maximum total acquisition amount30 10,000 shares
Amount unit¥100 million
Acquisition period4 August 2026 to 30 October 2026
| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | ¥888 100 million (YoY +10.7%) |
| Operating profit | ¥15 100 million (YoY -65.0%) |
| Ordinary income | ¥18 100 million (profit before tax for the quarter) (YoY -62.7%) |
| Net income | ¥10 100 million (profit for the quarter attributable to owners of the parent) (YoY -71.3%) |
| Gross Profit Margin | 28.1 % |
| Operating profit margin | 1.7 % |
| Results for the three months of the current quarter | Revenue ¥888 100 million / Business profit ¥20 100 million / Operating profit ¥15 100 million / Profit before quarterly income taxes ¥18 100 million / Quarterly profit attributable to owners of the parent ¥10 100 million |
| Full-year earnings forecast | Revenue ¥3,640 100 million / Business profit ¥234 100 million / Operating profit ¥206 100 million / Income before taxes ¥210 100 million / Profit for the period attributable to owners of the parent ¥150 100 million / ROE 10.1 % / Annual dividend ¥20 |
| Self-assessment against the plan | Revenue exceeded expectations, but business profit fell short of expectations |
| Segment results | S&S Revenue ¥185 100 million (YoY +1.1%) / Business profit ¥1 100 million (YoY -92.3%) / M&T Revenue ¥535 100 million (YoY +14.8%) / Business profit ¥6 100 million (YoY -62.3%) / ES Revenue ¥144 100 million (YoY +9.2%) / Business profit ¥13 100 million (YoY +208.5%) / Other Revenue ¥24 100 million (YoY +13.9%) / Business profit ¥0 100 million (YoY -85.4%) |
| Breakdown of Factors Affecting the Change | Factors Impact of soaring memory prices / Amount ¥-14 100 million, Factors Impact of foreign-exchange hedging / Amount ¥-6 100 million, Factors Increase in fixed costs / Amount ¥-29 100 million, Factors Benefit from passing through higher prices / Amount ¥10 100 million, Factors Higher sales, improved profit margins and other factors / Amount ¥24 100 million |
| Key KPIs | Indicator name EBITDA / Value ¥74 100 million / Year on year against the same period last year ¥-21.7 100 million, Indicator name EBITDA margin / Value 8.3 % / Year on year against the same period last year Not disclosed, Indicator name Net cash / Value ¥25 100 million / Year on year against the same period last year Not disclosed, Indicator name Equity ratio attributable to owners of the parent / Value 41.8 % / Year on year against the same period last year Not disclosed |
| Assumptions Underlying the Business Outlook | Foreign-exchange rates used in earnings forecasts US$1 ¥155 / €1 ¥180 |
| Medium-term management plan targets | Plan name VISION2030 / Subject M&T OEM business (domestic products) sales target / Target fiscal year Fiscal 2025 to fiscal 2030 / Target value Sales target shown in the graph. The target for fiscal 2030 is approximately ¥60 billion / Progress Orders equivalent to nearly the full sales target have already been secured |
| Financial targets | ROE Forecast for the fiscal year ending March 2027 10.1 % / ROIC Actual results for the fiscal year ending March 2026 8.9 % / Net debt-to-equity ratio First quarter of the fiscal year ending March 2027 -0.02 times / Equity ratio attributable to owners of the parent First quarter of the fiscal year ending March 2027 41.8 % |
| Annual Dividend | Annual dividend per share ¥20 / Interim Dividend ¥10 / Year-end dividend ¥10 |
| Payout ratio | Total payout ratio 39 % (forecast) / Policy Targeting a total payout ratio of 30–45% |
| Acquisition of treasury shares | Maximum number of shares to be repurchased 300 10,000 shares / Maximum total acquisition amount 30 10,000 shares / Amount unit ¥100 million / Acquisition period 4 August 2026 to 30 October 2026 |
| Capital expenditures | ¥37 100 million |
| New initiatives | Completion of the acquisition of San Luis Aviation, Inc. (SLA) as a subsidiary and entry into the federal government market using the ESChat push-to-talk service, Beginning to accept orders for Viking Connect equipped with the ESChat app, Restructuring the sales organization for the radio systems business, concentrating resources on priority markets, and strengthening collaboration with sales partners, Passing through soaring memory prices and reforming the supply chain and procurement functions |
Items this document does not state (9)
Selling, general and administrative expensesProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookOrders received and order backlogMarket Size / ShareKey points of the Q&A
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Revenue increased due to higher sales of M&T domestic products, strong performance in ES entertainment, and the depreciation of the yen. Despite the benefit of higher revenue, business profit declined because of the impact of the closure of U.S. government agencies on S&S radio systems, soaring prices for components such as memory, and higher fixed costs, including personnel expenses.
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