Aida Engineering Q1 Operating Profit Drops 64% Even as Orders Surge 44%

Deliveries fell; the order book did the opposite

Aida Engineering, Ltd. (TSE: 6118) published consolidated results for the three months to June 30, 2026 on August 28, 2026 under Japanese GAAP. Revenue fell 17.3% to ¥15,347 million, driven mainly by lower high-speed press sales. Operating profit fell 63.9% to ¥457 million as the revenue decline met higher selling, general and administrative expenses; ordinary profit fell 42.6% to ¥801 million and net profit attributable to owners of the parent fell 48.5% to ¥484 million. Earnings per share came to ¥8.92 against ¥16.57 a year earlier.

Comprehensive income moved the other way, rising 157.9% to ¥2,440 million, helped by a ¥1,386 million increase in unrealised gains on securities. The quarter's widest measure of income was driven by investment marks rather than by machine deliveries.

Orders up 44.2%, and the backlog with them

Consolidated orders rose 44.2% to ¥20,512 million, led by large individual presses, and the order backlog closed the quarter at ¥63,560 million, 8.8% above the March year-end. The industry moved the same way: press-machine orders tracked by the Japan Forming Machinery Association rose 71.3% to ¥51,381 million in the quarter, mostly on overseas projects. By region, Asia (+140.3%) and the Americas (+105.2%) both more than doubled their intake, China rose 43.0% and Japan 9.5%, while Europe fell 10.7%.

Every region delivered less, and Asia slipped into a loss

Japan's segment revenue fell 24.6% to ¥7,960 million on lower high-speed press sales to overseas group companies, and segment profit fell 63.9% to ¥177 million. China fell 39.8% to ¥1,764 million with profit down 56.5% to ¥100 million despite lower SG&A. Asia fell 6.1% to ¥2,013 million and swung to a segment loss of ¥53 million from a ¥187 million profit as the gross margin weakened. The Americas fell 21.3% to ¥3,878 million with profit down 25.3% to ¥118 million, and Europe fell 9.9% to ¥3,082 million with profit down 42.9% to ¥13 million.

Balance sheet and unchanged guidance

Total assets edged down 0.3% to ¥125,089 million from the March 31, 2026 year-end, as a ¥2,920 million fall in trade receivables and a ¥761 million fall in cash outweighed a ¥1,096 million rise in inventories and a ¥2,007 million rise in investment securities. Net assets rose to ¥86,817 million and the equity ratio improved to 69.3% from 69.0%.

Aida left the full-year FY3/2027 guidance it published on May 15, 2026 unchanged: revenue of ¥80,000 million (+1.7%), operating profit of ¥5,700 million (+0.2%), ordinary profit of ¥6,000 million (+4.6%) and net profit of ¥4,300 million (+0.9%), for earnings per share of ¥79.13. The annual dividend forecast stays at ¥39.00, unchanged from the year just ended. With one quarter gone, ¥457 million of the ¥5,700 million operating-profit target is in hand — 8.0% — so the full-year figure leans heavily on converting that swollen backlog in the 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.