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Earnings presentation6859ESPEC CORP.Electrical Equipment and Precision Instruments

Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027

In Q1, order intake increased significantly on strong performance in areas including AI semiconductors and satellite communications, while net sales and operating income also exceeded the prior-year quarter. However, because the recognition of large projects shifted to Q2, net sales, operating income, and net income fell below the company's forecasts.

Worth reading
73In focus
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
1599
¥ million (year-on-year increase in revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFirst quarter of the fiscal year ending March 202715 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥13,922 million+13.0%
Operating profit¥382 million+14.1%
Ordinary income¥527 million+53.1%
Net income¥155 million +43.9%net income attributable to owners of the parent
Gross Profit Margin34 %
Operating profit margin2.7 %
Selling, general and administrative expenses¥4,353 million
Results for the three months of the current quarterQ1 results: order intake of ¥22,811 million, net sales of ¥13,922 million, operating income of ¥382 million, ordinary income of ¥527 million, and net income attributable to owners of the parent of ¥155 million
Full-year earnings forecast
Orders received
¥70,000 million
Net Sales
¥73,000 million
Operating profit
¥8,000 million
Ordinary income
¥8,100 million
Net income
¥5,880 million
Earnings per share
¥278.95
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Order intake was significantly above forecast, while net sales, operating income, and net income attributable to owners of the parent were below forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Change in operating profit
Change in gross profit due to changes in sales544
Change in gross profit due to changes in the cost ratio-7
Salaries and allowances-162
Fees paid-148
Research and development costs-66
Other SG&A expenses-113
Equipment business17
Services Business30
Other Businesses11
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Assumed US dollar exchange rate¥155
Assumed euro exchange rate¥180
Assumed Chinese yuan exchange rate¥22
New initiatives
  • Launch in July 2026 of the “AMR-SPM” low-current conductor reliability evaluation system for the AI semiconductor market
  • Launch in July 2026 of the “AMI-SPM” low-voltage insulation reliability evaluation system for the AI semiconductor market
  • Strengthen sales activities in the AI semiconductor and satellite communications fields
  • Expand production capacity in North America
  • Pursue orders related to semiconductors and aircraft equipment through contract testing
  • Set a share repurchase program with a maximum value of ¥6 billion and a maximum of 1.3 million shares
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received¥22,811 million
    Year on year against the same period last year+20.6%
  • Orders received in target marketsApproximately 20% increase
  • Overseas revenue ratio64.8 %
    Prior-year period54.8
  • Global share of environmental testing equipmentAt least 30%
  • Domestic share of environmental testing equipmentAt least 60%
Segment results
Equipment business
Orders received
¥20,341 million+29.1%
Net Sales
¥11,963 million+15.7%
Operating profit
¥480 million+14.8%
Services Business
Orders received
¥2,077 million-8.3%
Net Sales
¥1,763 million-3.8%
Operating profit
¥-74 million
Other Businesses
Orders received
¥531 million-48.1%
Net Sales
¥330 million+29.1%
Operating profit
¥-20 million
Medium-term management plan targets
Medium-Term Management Plan “PROGRESSIVE PLUS 2027” (FY2025–FY2027): cumulative total payout ratio of at least 50% over the 3-year period, with no dividend reductions. Other numerical targets and comparisons with actual results: Not disclosed
Financial targets
ROE
Target10 %
Market Size / Share
Global share of environmental testing equipmentAt least 30% (company estimate)
Domestic share of environmental testing equipmentAt least 60% (company estimate)
Orders received and order backlog
Orders received
¥22,811 million
Number of stores and locations
16 domestic sales and service locations, 5 domestic testing laboratories, 2 testing laboratories in China, and 1 testing laboratory in Thailand. Openings and closures during the period: Not disclosed
Number of employees
Number of Employees1,898 People consolidated
Annual Dividend
Annual¥115 per share
Interim¥45 per share
End of period¥70 per share
Payout ratio
41.2
Acquisition of treasury shares
Acquisition completed
¥3.2 billion
Period14 November 2025–30 July 2026
Number of Shares900,000 shares
Announced
Period7 August 2026 to 31 July 2027
Maximum Number of Shares1.3 million shares (6.07% of total shares outstanding)
Maximum Amount¥6 billion
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥13,922 million (YoY +13.0%)
Operating profit¥382 million (YoY +14.1%)
Ordinary income¥527 million (YoY +53.1%)
Net income¥155 million (net income attributable to owners of the parent) (YoY +43.9%)
Gross Profit Margin34 %
Operating profit margin2.7 %
Selling, general and administrative expenses¥4,353 million
Results for the three months of the current quarterQ1 results: order intake of ¥22,811 million, net sales of ¥13,922 million, operating income of ¥382 million, ordinary income of ¥527 million, and net income attributable to owners of the parent of ¥155 million
Full-year earnings forecastOrders received ¥70,000 million / Net Sales ¥73,000 million / Operating profit ¥8,000 million / Ordinary income ¥8,100 million / Net income ¥5,880 million / Earnings per share ¥278.95
Self-assessment against the planOrder intake was significantly above forecast, while net sales, operating income, and net income attributable to owners of the parent were below forecast
Segment resultsEquipment business Orders received ¥20,341 million (YoY +29.1%) / Net Sales ¥11,963 million (YoY +15.7%) / Operating profit ¥480 million (YoY +14.8%) / Services Business Orders received ¥2,077 million (YoY -8.3%) / Net Sales ¥1,763 million (YoY -3.8%) / Operating profit ¥-74 million / Other Businesses Orders received ¥531 million (YoY -48.1%) / Net Sales ¥330 million (YoY +29.1%) / Operating profit ¥-20 million
Breakdown of Factors Affecting the ChangeChange in operating profit Change in gross profit due to changes in sales 544 / Change in gross profit due to changes in the cost ratio -7 / Salaries and allowances -162 / Fees paid -148 / Research and development costs -66 / Other SG&A expenses -113 / Equipment business 17 / Services Business 30 / Other Businesses 11
Key KPIsIndicator name Orders received / Value ¥22,811 million / Year on year against the same period last year ¥20.6 million, Indicator name Orders received in target markets / Value Approximately 20% increase, Indicator name Overseas revenue ratio / Value 64.8 % / Prior-year period 54.8 %, Indicator name Global share of environmental testing equipment / Value At least 30%, Indicator name Domestic share of environmental testing equipment / Value At least 60%
Number of stores and locations16 domestic sales and service locations, 5 domestic testing laboratories, 2 testing laboratories in China, and 1 testing laboratory in Thailand. Openings and closures during the period: Not disclosed
Number of employeesNumber of Employees 1,898 People (consolidated)
Assumptions Underlying the Business OutlookAssumed US dollar exchange rate ¥155 / Assumed euro exchange rate ¥180 / Assumed Chinese yuan exchange rate ¥22
Medium-term management plan targetsMedium-Term Management Plan “PROGRESSIVE PLUS 2027” (FY2025–FY2027): cumulative total payout ratio of at least 50% over the 3-year period, with no dividend reductions. Other numerical targets and comparisons with actual results: Not disclosed
Financial targetsROE Target 10 % / Actual results Not disclosed
Annual DividendAnnual ¥115 per share / Interim ¥45 per share / End of period ¥70 per share
Payout ratio41.2
Acquisition of treasury sharesAcquisition completed Period 14 November 2025–30 July 2026 / Number of Shares 900,000 shares / Amount ¥3.2 billion / Announced Period 7 August 2026 to 31 July 2027 / Maximum Number of Shares 1.3 million shares (6.07% of total shares outstanding) / Maximum Amount ¥6 billion
Orders received and order backlogOrders received ¥22,811 million / Order backlog Not disclosed
Market Size / ShareGlobal share of environmental testing equipment At least 30% (company estimate) / Domestic share of environmental testing equipment At least 60% (company estimate)
New initiativesLaunch in July 2026 of the “AMR-SPM” low-current conductor reliability evaluation system for the AI semiconductor market, Launch in July 2026 of the “AMI-SPM” low-voltage insulation reliability evaluation system for the AI semiconductor market, Strengthen sales activities in the AI semiconductor and satellite communications fields, Expand production capacity in North America, Pursue orders related to semiconductors and aircraft equipment through contract testing, Set a share repurchase program with a maximum value of ¥6 billion and a maximum of 1.3 million shares
Items this document does not state (5)
Progress against full-year forecastUnit price and quantity metricsRisk amount incorporated into the outlookCapital expendituresKey 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.

Order intake was strong in the AI semiconductor and satellite communications fields, and Europe and South Korea also recovered. The main reason net sales and profit fell below forecasts was that, at the customer's request, the timing of recognizing large projects for environmental testing equipment and energy device equipment shifted to Q2. Lower revenue from contract testing in the Services business also had an impact.

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Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027 | ESPEC CORP. (6859) timely disclosure | Komori