SATO HOLDINGS announced its results for the first quarter of the fiscal year ending March 2027. Net profit for April–June rose to ¥2.5 billion, more than double the year-earlier level, driven by the Japan business. The company also raised its full-year earnings forecast and announced a ¥2 billion share buyback.
Revenue from the Japan business rose 19.7% year on year to ¥22,858 million, while operating profit increased sharply to ¥1,850 million, helping lift overall earnings. Growth in the Mechatronics and Supply businesses was particularly pronounced, and the gross margin improved to 47.4%. CFO Mashiko (益子) pointed to demand brought forward and the effects of organizational reform, while indicating that the impact of foreign exchange and labor costs is expected to continue.
Overseas revenue was solid, rising 16.1%, but growth excluding foreign exchange effects was limited to 2.1%, and operating profit fell 6.3% year on year to ¥1,526 million. Operating profit in Europe fell to ¥0, while Asia and Oceania maintained high revenue levels but saw lower profit. By region, the results were affected by higher costs, upfront expenses and the normalization of some demand.
The full-year forecasts were raised to revenue of ¥172,000 million, operating profit of ¥12,100 million, ordinary profit of ¥11,600 million and net profit of ¥7,700 million. The company raised its outlook for the Japan business in the first half, while maintaining its initial forecast for the second half, reflecting a cautious view. The assumed exchange rate for the US dollar was revised from ¥150 to ¥155, while the euro assumption for Europe was revised to ¥180. The upward revision to the overseas business forecast was limited.