The recovery broadened on the back of volume growth, but regional and industry variation will be the focus in FY2027-H1

Revenue in FY2027-Q1 was ¥270.987 billion, up 35.4% year on year. The breakdown of the increase shows that sales volume rose 22.3% year on year, while higher selling prices contributed only 0.1%. The recovery in sales volume, rather than price pass-through, was the main driver. The most important point to confirm in the next results will be whether capital investment demand in semiconductors and electrical equipment, automotive applications and machine tools translated into actual shipments.

Revenue by customer location was ¥47.7 billion in Japan, ¥31.2 billion in North America, ¥43.8 billion in Europe, ¥96.7 billion in Greater China, ¥44.3 billion in Other Asia and ¥7.0 billion in Other. Greater China accounted for approximately 35.7% of total revenue, compared with approximately 16.2% for Europe and 11.5% for North America, indicating differing degrees of recovery by region. The FY2026 explanation pointed to recovery in electrical equipment and EV-related demand in Greater China and semiconductor-related demand in Japan, North America and South Korea, while capital investment in automotive applications in North America, Japan and Europe continued to be postponed. It will therefore be necessary to determine whether this gap narrowed in FY2027-H1.

With FY2025 set at 100, the order index was 173 for semiconductors and electrical equipment, 115 for automotive applications, 119 for machine tools, 110 for food, 111 for medical, 113 for Other and 135 on a consolidated basis. By region, the index was 127 for Japan, 121 for North America, 109 for Europe, 156 for Greater China and 146 for Other Asia and Oceania, with semiconductors and electrical equipment and Greater China driving the overall increase. The order index indicates direction, but it is not order intake or order backlog on a monetary basis, so it is not yet possible to determine how much revenue and profit the higher index will generate.

The company reports a single segment, the Industrial Automation Business, and therefore does not disclose profit margins by industry or region. Accordingly, the next results should be reviewed not only for consolidated revenue growth, but also to determine whether orders for semiconductors and electrical equipment at 173 are spreading to higher-margin products, whether the recovery in automotive applications at 115 and Europe at 109 can be confirmed on a volume basis, and whether dependence on Greater China at 156 has become excessive.