Okaya & Co. Q1 Net Profit Jumps 33% to ¥9.8bn on Strong Trading; Full-Year Guidance Held for a Decline

Veteran steel-trading house Okaya & Co. opened FY2/2027 with first-quarter revenue up 11.5% to ¥308.5 billion and net profit up 33.1% to ¥9.8 billion, but it kept full-year guidance pointing to lower profit; a 2-for-1 stock split took effect on June 1.

Okaya & Co., Ltd. Okaya & Co., Ltd. · TSE

Okaya & Co., Ltd. (TSE: 7485), a Nagoya-based steel and metals trading house that is one of Japan's oldest companies — founded in 1669 — and also active in machinery, industrial materials, electronics and information equipment, opened its fiscal year ending February 2027 with broad-based strength. For the first quarter (March 1–May 31, 2026) under Japanese GAAP, consolidated revenue rose 11.5% year-on-year to ¥308.47 billion, operating profit climbed 20.1% to ¥11.92 billion, ordinary profit rose 19.8% to ¥13.38 billion and net profit attributable to owners jumped 33.1% to ¥9.79 billion. EPS was ¥254.37, restated for the 2-for-1 split, up from ¥191.11.

Broad-based trading strength lifts every profit line

Strength across steel and metals trading lifted every profit line in the quarter, with profit growth comfortably outpacing the 11.5% revenue gain. The balance sheet remains robust, with total assets of ¥995.96 billion, net assets of ¥505.63 billion and an equity ratio of 48.6%. One caveat: comprehensive income was negative at −¥10.06 billion despite the strong net profit, owing to foreign-exchange-translation and securities-valuation losses, and net assets dipped slightly quarter-on-quarter.

Stock split and dividend

Okaya carried out a 2-for-1 common-stock split effective June 1, 2026, and per-share figures are restated accordingly. The company guides a full-year FY2/2027 dividend of ¥86.00 per share post-split (¥43 interim plus ¥43 year-end) — equivalent to ¥172 before the split, up from ¥161 a year earlier.

Full-year outlook

Despite the strong start, Okaya kept its cautious full-year FY2/2027 guidance unchanged, projecting revenue of ¥1,150.0 billion (−0.5%), operating profit of ¥35.0 billion (−13.5%), ordinary profit of ¥40.0 billion (−12.1%) and net profit of ¥28.0 billion (−8.2%), for EPS of ¥727.60. The contrast between the double-digit first-quarter gains and the guided full-year decline reflects the company's conservative stance for the remainder of the year.

Okaya & Co. — Q1 FY2/2027 Key Financials (J-GAAP, consolidated)
MetricQ1 FY2/27Q1 FY2/26YoY
Revenue (¥bn)308.47276.78+11.5%
Operating profit (¥bn)11.929.93+20.1%
Ordinary profit (¥bn)13.3811.17+19.8%
Net profit attrib. (¥bn)9.797.35+33.1%
EPS (¥, split-adj.)254.37191.11+33.1%
Equity ratio48.6%49.6%−1.0pp
FY2/27 net guidance (¥bn)28.0030.50−8.2%

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.