Citizen Watch's first-quarter results for fiscal 2026 showed higher revenue and profit, driven by strong performance in its watch and machine tool businesses. The company raised its forecasts for the first half and full year, and increased its annual dividend by ¥3 to ¥53.
Consolidated net sales for the first quarter of fiscal 2026 came to ¥98.1 billion, up 30.3% year on year. Operating profit was ¥9.9 billion, up 110.9% year on year, with an operating margin of 10.1%. Ordinary profit was ¥11.7 billion, up 90.8% year on year, while quarterly net income attributable to owners of the parent was ¥8.9 billion, down 2.9% from the same period a year earlier.
By business segment, the watch business posted net sales of ¥54.8 billion, up 32.1% year on year, and operating profit of ¥7.1 billion, up 62.1%, with an operating margin of 13%. The machine tool business recorded net sales of ¥25.6 billion, up 35%, and operating profit of ¥3.2 billion, up 112.5%. The devices business also posted higher revenue and profit, supported by solid sales of products including photo printers.
The full-year forecast was revised upward to net sales of ¥395 billion, operating profit of ¥40.5 billion, ordinary profit of ¥43.5 billion, and net income attributable to owners of the parent of ¥32 billion. The assumed exchange rates for the period from the second quarter onward were set at ¥155 to the US dollar and ¥180 to the euro, incorporating the differences from the previous forecast. The annual dividend is now expected to be ¥53, an increase of ¥3 from the previous forecast.