Alinco Q1 Operating Profit Jumps 22% to ¥782 Million as Albatross Scaffolding Lifts Construction Equipment Sales 16%

Alinco Incorporated (TSE: 5933) reported consolidated results for the first quarter of the fiscal year ending March 2027 (March 21 – June 20, 2026) under Japanese GAAP. Revenue rose 6.4% to ¥16,395 million, operating profit climbed 21.6% to ¥782 million, and ordinary profit advanced 25.5% to ¥770 million. Net profit attributable to owners of the parent increased 17.4% to ¥469 million, or ¥23.56 per share versus ¥20.07 a year earlier. EBITDA — which the company defines as ordinary profit plus depreciation and goodwill amortisation — rose 14.3% to ¥1,374 million, while comprehensive income swung to ¥506 million from just ¥27 million.

Albatross scaffolding powers the core segment

The Construction Equipment business, Alinco's largest at 43% of group revenue, lifted sales 16.4% to ¥7,047 million and segment profit 75.6% to ¥841 million — the single biggest driver of the quarter. Scaffolding rental companies accelerated equipment procurement on concerns that Middle East tensions could constrain supply, and the company's push to link "sales" and "rental" widened the user base for its new Albatross scaffolding system, whose sales jumped 45.3% year on year. Subsidiary Sofuku Koki also grew on large orders tied to logistics-facility efficiency projects.

Rental grows on events and price revisions; two segments turn loss-making

The Rental business posted revenue up 3.1% to ¥4,372 million and segment profit up 8.4% to ¥268 million. Both mid-to-high-rise and low-rise rental demand was held back by construction delays, but event rentals ran strongly from the start of the quarter as concert organisers pulled schedules forward to avoid extreme summer heat. Depreciation rose on continued investment in rental assets — a response to contractors shifting "from purchasing to renting" — but higher volume and rental rate increases more than offset it.

The two consumer-facing segments went the other way. Housing Equipment revenue slipped 2.6% to ¥3,673 million and the segment swung to a ¥156 million loss from a ¥12 million profit, as a weaker yen and higher raw-material prices lifted procurement costs while aluminium ladders and fitness products suffered from softer consumer sentiment; brown-rice cold-storage units and subsidiary Ship's aerial work platforms were the bright spots. Electronics revenue fell 3.1% to ¥1,302 million and its loss widened to ¥124 million from ¥102 million — replacement demand for digitised firefighting radios progressed steadily, but the subsidiary printed-circuit-board business shrank as it revised order prices upward rather than compete on price. Total reportable segment profit rose 30.2% to ¥828 million before a ¥57 million corporate adjustment.

Balance sheet, buyback and dividend

Total assets grew ¥2,077 million from the previous year-end to ¥75,360 million, driven mainly by higher notes and accounts receivable and by the establishment of a share-buyback trust. Liabilities rose ¥2,213 million to ¥41,937 million on increased long-term borrowings. Net assets edged down ¥135 million to ¥33,422 million as ¥439 million of dividends and share repurchases outweighed quarterly earnings, trimming the equity ratio to 44.4% from 45.8%. Book value per share was ¥1,690.17. Under a board resolution of May 1, 2026, Alinco began buying back stock on May 7 and acquired 198,600 treasury shares during the quarter, lifting treasury stock to ¥1,037 million.

Guidance unchanged

Alinco reaffirmed the full-year forecast it issued on May 1, 2026: revenue of ¥65,200 million (up 4.1%), operating profit of ¥3,000 million (up 35.6%), ordinary profit of ¥3,200 million (up 15.2%) and net profit of ¥2,150 million (up 22.6%), for EPS of ¥107.64 and EBITDA of ¥6,273 million (up 18.9%). First-half guidance calls for revenue of ¥32,700 million and operating profit of ¥1,400 million. The dividend forecast was also left unchanged at ¥44.00 per share for the year (¥22.00 interim plus ¥22.00 year-end), against ¥45.00 paid in FY3/2026. With Q1 revenue at 25% and operating profit at 26% of the full-year plan, the company is broadly on track against a guidance that assumes a materially stronger second half.

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. Balance-sheet comparatives are against the previous fiscal year-end (March 20, 2026).