Fiscal Year Ending December 2026 Q1 Financial Results Briefing

Q1 FY2026 Results

Net sales for the first quarter of 2026 were 18,485 million yen, down 5.0% year-over-year. The main cause was continued sluggish orders for OEM products; however, the Surveillance & FA-related business, Mobility & Healthcare, and other businesses increased sales, limiting the decline. Operating income was 3,441 million yen, down 18.7% year-over-year. While R&D investments and higher personnel expenses affected results, selling, general and administrative expenses were controlled at the same level as the previous year. Gross profit margin decreased by 1.4 points year-over-year to 44.4%.

Segment Performance

In the Photo-related business, sales declined 16.7% year-over-year to 11,305 million yen due to sluggish OEM product sales, and operating income decreased 37.2% to 2,390 million yen. The Surveillance & FA-related business showed steady growth with net sales of 3,602 million yen (up 25.2% YoY) and operating income of 523 million yen (up 27.9% YoY). The Mobility & Healthcare and other businesses also achieved sales growth and profit increase, with net sales of 3,577 million yen (up 19.1% YoY) and operating income of 901 million yen (up 23.7% YoY).

2026 Plan and Mid-term Management Plan Progress

The full-year plan for 2026 targets net sales of 910 billion yen and operating income of 18.5 billion yen. Q1 results have exceeded plans in both sales and profit, showing solid progress. The mid-term management plan, 'Value Creation26 ver.2.0,' is progressing smoothly, with expected growth especially in the Surveillance & FA-related business and the Mobility & Healthcare sectors.