Q1 operating profit ahead of the full-year plan; core-business progress to be reconfirmed at H1

From April to June 2026, Q1 revenue rose 19.9% year on year to ¥203,705 million and operating profit rose 24.4% to ¥41,778 million. Progress against the full-year revenue forecast of ¥790,000 million was 25.8%, while progress against the ¥150,000 million operating-profit forecast was 27.9%, with operating profit ahead of the 25% elapsed-calendar-year rate.

However, this is a simple calculation that does not take quarterly seasonality into account. To achieve the full-year forecast, ¥586,295 million in revenue and ¥108,222 million in operating profit remained after Q1. Accordingly, at H1 it will be necessary to assess not only how close cumulative revenue and operating profit come to the simple half-year benchmarks of ¥395,000 million and ¥75,000 million, respectively, but also whether the standalone Q2 profit margin is maintained.

The Company left its full-year earnings forecast unchanged as of Q1. It explained that, although growth in automotive-related sales and improvement in Component & Solution continue, factors including precious-metal prices, the situation in the Middle East, China's export restrictions and market-price fluctuations in investment securities make it difficult to establish assumptions for revising the forecast. Even if revenue and operating profit continue to rise at H1, the market's assessment will depend on whether the full-year forecast is raised or maintained.

The Q1 earnings report did not disclose regional sales, order intake, order backlog or non-financial sales volumes. At the next results announcement, it will be important to confirm by segment and factor whether the increase in revenue to ¥203,705 million was driven by volume, price pass-through, foreign exchange or acquisitions, and whether the growth in operating profit to ¥41,778 million can be repeated in Q2.