Daiichi Jitsugyo Q1 2026 slides reveal all-time high profits, segment performance varies

Introduction & Market Context

Daiichi Jitsugyo Co., Ltd. (TYO:8059) presented its first quarter financial results for the fiscal year ending March 31, 2026, on August 1, 2025. The Japanese trading company, which specializes in industrial machinery and equipment across various sectors, reported record-high sales and profits for the quarter. The company’s stock is currently trading at 2,765 yen, up 1.77% and near its 52-week high of 2,933 yen, reflecting positive market sentiment following these strong results.

Quarterly Performance Highlights

Daiichi Jitsugyo achieved significant growth in both top and bottom lines during Q1 FY2026, setting new records for the company. Net sales increased by 6.117 billion yen year-over-year to reach 49.489 billion yen. Operating income grew by 403 million yen to 2.501 billion yen, while profit attributable to owners of parent jumped by 660 million yen to 1.745 billion yen.

As shown in the following financial overview, the company has already made substantial progress toward its full-year forecasts, with approximately 20-22% of annual targets achieved in the first quarter:

Earnings per share (EPS) for the quarter stood at 54.74 yen, representing a significant increase of 20.53 yen compared to the same period last year. The company has forecast an annual dividend of 108 yen per share, with an interim dividend of 51 yen.

Segment Analysis

The company’s performance varied considerably across its business segments, with Automobile and Healthcare driving growth while other segments experienced declines. The Automobile segment saw sales increase by 4.133 billion yen to 11.285 billion yen, while operating income tripled to 635 million yen. Similarly, the Healthcare segment recorded impressive growth with sales surging by 4.194 billion yen to 6.543 billion yen and operating income jumping to 658 million yen.

Conversely, the Industrial Machinery segment faced challenges with sales declining by 1.929 billion yen to 5.135 billion yen, resulting in an operating loss of 128 million yen. The Plant & Energy and Energy Solutions segments also experienced modest declines in both sales and operating income.

The following segment breakdown illustrates these contrasting performances:

The Electronics segment showed moderate growth with sales increasing by 536 million yen to 11.551 billion yen and operating income rising slightly to 640 million yen. Meanwhile, the Aviation & Social Infrastructure segment maintained relatively stable sales but saw a slight decrease in operating income.

Financial Position and Cash Flow

Daiichi Jitsugyo’s consolidated financial position as of June 30, 2025, showed total assets of 165.311 billion yen, a decrease of 6.062 billion yen from the end of the previous fiscal year. This reduction was primarily due to a decrease in accounts receivable. Net assets increased slightly by 382 million yen to 80.234 billion yen.

The company’s balance sheet details are presented below:

The income statement reveals that while selling, general and administrative expenses increased by 285 million yen, primarily due to higher labor and travel expenses, non-operating expenses decreased significantly by 318 million yen, mainly attributable to lower foreign exchange losses. The overseas sales ratio declined by 3.5 percentage points to 59.7%, indicating a shift toward domestic market contribution.

In terms of cash flow, the company generated free cash flow of 5.072 billion yen during the quarter, though this represented a decrease of 6.400 billion yen compared to the same period last year. Cash and cash equivalents increased by 2.880 billion yen from the end of the previous fiscal year to 36.763 billion yen.

The following cash flow statement provides further details:

Forward-Looking Statements

Based on the Q1 results, Daiichi Jitsugyo appears to be on track to meet its full-year forecasts for FY2026. The company has projected annual net sales of 220 billion yen, operating income of 12 billion yen, and profit attributable to owners of parent of 8.6 billion yen. With approximately 20-22.5% of these targets already achieved in the first quarter, the company has established a solid foundation for the remainder of the fiscal year.

The divergent performance across business segments suggests that the company’s diversified business model is providing resilience, with strength in Automobile and Healthcare offsetting weaknesses in other areas. However, the decline in the Industrial Machinery segment may warrant attention in subsequent quarters, particularly if the trend continues.

As Daiichi Jitsugyo moves forward in FY2026, investors will likely focus on whether the company can maintain its growth momentum in the high-performing segments while addressing challenges in the underperforming areas. The company’s ability to manage expenses and foreign exchange impacts will also be crucial factors in achieving its full-year targets.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.