THK Co., Ltd. (TSE: 6481), the world's leading maker of linear-motion (LM) guides and related precision machine components, reported consolidated results for the first quarter of the fiscal year ending December 31, 2026 (the three months from January 1 to March 31, 2026) under IFRS. Revenue from continuing operations rose 27.4% year-on-year to ¥69,043 million, while operating profit jumped 364.4% to ¥7,620 million from ¥1,640 million a year earlier. Pre-tax profit advanced 291.5% to ¥6,702 million, and quarterly profit attributable to owners of the parent surged to ¥4,491 million from ¥319 million. Basic EPS came in at ¥40.09, up from ¥2.75 in the prior-year quarter.
A sharp recovery in the core linear-motion business
The standout feature of the quarter was the steep recovery in profitability. With operating profit more than quintupling on a 27% rise in revenue, the operating margin expanded to roughly 11.0% from about 3.0% a year ago — a sign of strong operating leverage as factory-automation, machine-tool and semiconductor-related demand for THK's linear guides and ball screws rebounded from a soft prior-year base. Quarterly profit (the all-in figure spanning continuing and discontinued operations) reached ¥4,584 million, up 871.6% from ¥471 million, and total comprehensive income swung to a positive ¥7,300 million from a ¥10,676 million loss in the prior-year quarter, helped by the absence of the heavy currency-translation drag seen a year earlier.
Transportation Equipment moved to discontinued operations
From the fourth quarter of the prior fiscal year, THK has classified its Transportation Equipment business as a discontinued operation. As a result, the headline revenue, operating profit and pre-tax profit figures now reflect continuing operations only — effectively the Industrial Machinery business — while quarterly profit and profit attributable to owners combine both continuing and discontinued operations. Prior-year comparatives have been restated on the same basis. The reclassification sharpens the focus of THK's reported results on its core linear-motion and precision-components franchise, which serves machine tools, general industrial machinery, electronics and semiconductor equipment across Japan, the Americas, Europe and China.
Balance sheet and financial position
Total assets stood at ¥480,619 million at the end of the first quarter, up from ¥472,992 million at the prior fiscal year-end. Total equity eased to ¥252,705 million from ¥265,749 million, and equity attributable to owners of the parent was ¥252,683 million versus ¥261,333 million. The parent equity ratio slipped to 52.6% from 55.3%, still a solidly capitalized position consistent with THK's conservative balance-sheet management. The company held 119,099,803 shares issued (including 7,080,072 treasury shares) at quarter-end.
Dividend policy anchored on DOE
THK operates a dividend policy targeting a dividend-on-equity (DOE) ratio of around 8%. For FY12/2026 the company forecasts an annual dividend of ¥184.00 per share — an interim dividend of ¥92.00 and a year-end dividend of ¥92.00 — down from the prior year's ¥246.00 per share (¥123.00 interim + ¥123.00 year-end), reflecting the DOE-based calculation against the current equity base. No revision was made to the previously announced dividend forecast.
Full-year FY12/2026 guidance raised
Management revised its full-year forecast for the fiscal year ending December 2026. THK now guides to revenue of ¥276,000 million (+14.8%), operating profit of ¥31,000 million (+114.7%), pre-tax profit of ¥29,800 million (+89.2%) and net profit attributable to owners of ¥22,700 million, implying basic EPS of ¥202.64. For the first half (cumulative through the second quarter), the company expects revenue of ¥138,000 million, operating profit of ¥15,400 million and net profit attributable to owners of ¥10,500 million (EPS ¥93.73). The upgrade reflects the strong start to the year and the firmer demand backdrop for the company's linear-motion products.
| Metric | Q1 FY26 | Q1 FY25 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 69,043 | 54,181 | +27.4% |
| Operating profit (¥ million) | 7,620 | 1,640 | +364.4% |
| Pre-tax profit (¥ million) | 6,702 | 1,712 | +291.5% |
| Net profit attrib. to owners (¥ million) | 4,491 | 319 | +1,307.8% |
| Quarterly profit (¥ million) | 4,584 | 471 | +871.6% |
| Basic EPS (¥) | 40.09 | 2.75 | +1,357.8% |
| Operating margin | 11.0% | 3.0% | +8.0pp |
| Total assets (¥ million) | 480,619 | 472,992 | +1.6% |
| Parent equity ratio | 52.6% | 55.3% | −2.7pp |
| Annual dividend forecast (¥) | 184.00 | 246.00 | −25.2% |
| FY26 revenue guidance (¥ million) | 276,000 | — | +14.8% |
| FY26 operating profit guidance (¥ million) | 31,000 | — | +114.7% |
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