Seiren Co., Ltd. (TSE: 3569) reported consolidated first-quarter results for the three months to June 30, 2026 under Japanese GAAP. Revenue rose 21.0% to ¥49,145 million, operating profit climbed 23.5% to ¥6,667 million, recurring profit advanced 24.4% to ¥7,096 million and profit attributable to owners of the parent rose 13.9% to ¥4,656 million. Earnings per share reached ¥79.25 against ¥69.71. Comprehensive income tells the sharper story: ¥6,853 million against just ¥138 million a year earlier, when currency marks had gutted the figure.
Guidance raised three months after it was set
Citing a record first quarter and the expectation that Vehicle Materials and Electronics will track plan, Seiren revised upward the full-year forecast it published on May 13, 2026. Revenue guidance rises to ¥195,300 million from ¥190,300 million (+2.6%), operating profit to ¥22,600 million from ¥20,900 million (+8.1%), recurring profit to ¥23,000 million from ¥21,100 million (+9.0%) and profit attributable to owners to ¥15,700 million from ¥15,000 million (+4.7%), lifting EPS guidance to ¥267.58 from ¥255.07. Measured against FY3/2026 actuals — revenue of ¥171,765 million, operating profit of ¥20,832 million, recurring profit of ¥22,005 million and net profit of ¥15,599 million — the new plan implies revenue growth of 13.7% and operating-profit growth of 8.5%, but net-profit growth of only 0.6%. Management flags the usual caveats: US trade policy, Middle East geopolitics, raw-material and energy prices, and currency swings. The dividend forecast is unchanged at ¥76.00 per share (¥38.00 interim plus ¥38.00 year-end), the same as FY3/2026.
Electronics is the margin story; NB Seiren is the scale story
Vehicle Materials remains the group's core, with revenue up 10.0% to ¥30,426 million and operating profit up 8.2% to ¥4,507 million. Domestically, a better product mix in car-seat materials, sales into new vehicle models and higher airbag orders for new models drove both lines higher, despite raw-material and energy cost inflation traced to Middle East disruption. Overseas — reported on a January–March 2026 basis — was weaker: the US gave back a strong prior-year comparison in certain products, Mexico was hit by sluggish electric-vehicle sales, and while Asia performed well (high-value-added products at Shilian Automotive Interior (Suzhou) plus cost-reduction gains, and higher car-seat material sales in Thailand), overseas as a whole declined on both revenue and profit.
Electronics was the standout in profitability, with revenue up 16.2% to ¥3,719 million and operating profit up 60.0% to ¥1,007 million. Materials for mobile devices and for AI-related server applications ran strongly, space-systems revenue contributed, and at KB Seiren demand recovered for "Savina" HDD wiping cloths used in data centres while "Beltron" conductive yarn — used in dust-proof clothing for overseas semiconductor makers — progressed steadily. Seiren Advanced Materials saw solid sales in silicon-wafer oxide-film processing.
Three segments were reshaped by the consolidation of NB Seiren, which became a subsidiary on January 1, 2026. Environment & Living Materials revenue jumped 147.9% to ¥5,993 million with profit up 131.4% to ¥519 million, as recovering consumer materials at KB Seiren were joined by NB Seiren's industrial fibres and nonwovens. Other revenue rose 753.6% to ¥1,705 million (profit up 48.6% to ¥215 million), where Nagoya Seiren's property leasing and Seiren Shoji's insurance agency were augmented by NB Seiren's packaging film and container raw materials. Medical grew revenue 20.0% to ¥2,077 million and profit 24.6% to ¥293 million: artificial blood vessels and supporters held steady and NB Seiren short fibres for patch materials were added, offsetting lower patch-material sales and cost inflation at KB Seiren. High Fashion was the only segment to shed revenue, down 3.7% to ¥5,223 million, yet still grew profit 7.4% to ¥469 million on cost-reduction work — sports, innerwear and fashion apparel sales were soft on a standalone basis, KB Seiren's specialty yarns held up better than its standard yarns, and Saha Seiren in Thailand lapped prior-year special demand.
| Segment | Revenue (¥ million) | Revenue YoY | Operating profit (¥ million) | Profit YoY |
|---|---|---|---|---|
| Vehicle Materials | 30,426 | +10.0% | 4,507 | +8.2% |
| High Fashion | 5,223 | -3.7% | 469 | +7.4% |
| Electronics | 3,719 | +16.2% | 1,007 | +60.0% |
| Environment & Living Materials | 5,993 | +147.9% | 519 | +131.4% |
| Medical | 2,077 | +20.0% | 293 | +24.6% |
| Other | 1,705 | +753.6% | 215 | +48.6% |
| Consolidated | 49,145 | +21.0% | 6,667 | +23.5% |
One of the strongest balance sheets on the exchange
Total assets grew to ¥227,826 million from ¥223,926 million at March 31, 2026, with cash and deposits little changed at ¥39,158 million. Net assets rose to ¥165,758 million from ¥161,787 million and shareholders' equity to ¥164,808 million from ¥160,816 million, pushing the equity ratio to 72.3% from 71.8% — an unusually conservative capital structure for a manufacturer of this size. Net assets per share improved to ¥2,810.78 from ¥2,734.60. Shares issued were unchanged at 64,633,646, while treasury holdings rose to 5,999,405 from 5,825,848, leaving an average of 58,764,395 shares outstanding for the quarter. Seiren applies special accounting treatments permitted for quarterly consolidated statements; there were no changes in accounting policies or estimates and no restatements.
| Metric | Q1 FY3/2027 | Q1 FY3/2026 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 49,145 | 40,625 | +21.0% |
| Operating profit (¥ million) | 6,667 | 5,399 | +23.5% |
| Recurring profit (¥ million) | 7,096 | 5,705 | +24.4% |
| Profit attributable to owners (¥ million) | 4,656 | 4,088 | +13.9% |
| Comprehensive income (¥ million) | 6,853 | 138 | +4,865.9% |
| EPS (¥) | 79.25 | 69.71 | +13.7% |
| Total assets (¥ million) | 227,826 | 223,926 | +1.7% |
| Net assets (¥ million) | 165,758 | 161,787 | +2.5% |
| Equity ratio (%) | 72.3 | 71.8 | +0.5pt |
| Net assets per share (¥) | 2,810.78 | 2,734.60 | +2.8% |
| FY3/2027 guidance — revenue (¥ million) | 195,300 | 190,300 | +2.6% vs prior plan |
| FY3/2027 guidance — operating profit (¥ million) | 22,600 | 20,900 | +8.1% vs prior plan |
| FY3/2027 guidance — recurring profit (¥ million) | 23,000 | 21,100 | +9.0% vs prior plan |
| FY3/2027 guidance — net profit (¥ million) | 15,700 | 15,000 | +4.7% vs prior plan |
| Annual dividend per share (¥) | 76.00 | 76.00 | unchanged |
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.