FUJI CORPORATION Q1 FY2026 earnings call

• Overall Financial Performance

  • Consolidated revenue hit 41.5 billion yen, a 33.7% year-over-year increase, marking an all-time quarterly high. Orders reached 43.6 billion yen, a 76.1% year-over-year increase, staying above 40 billion yen for two consecutive quarters.
  • Operating profit reached 5.1 billion yen, a 19 billion yen year-over-year increase; ordinary profit was 5.6 billion yen and net profit was 5.6 billion yen, both increasing year-over-year, driven by broad market recovery.
  • The 19 billion yen operating profit increase came from a 2.4 billion yen gross profit expansion: 4.9 billion yen from higher sales volume, 95 million yen from improved operating rate, 39 million yen from component cost reduction, offset by 1.3 billion yen higher fixed manufacturing costs (mainly labor cost increases from base pay hikes) and 1.3 billion yen selling price decline (from higher China/Asia revenue share). Selling, general and administrative costs increased 400 million yen, driven by higher personnel, R&D and logistics expenses from higher sales.
  • On the balance sheet, total assets increased 0.13 billion yen (mainly from higher notes and accounts receivable), total liabilities increased 0.34 billion yen (mainly from higher notes and accounts payable), and net assets decreased 0.2 billion yen (mainly from treasury stock acquisition).

• Regional and Industry Trends

  • Strong demand was led by large projects in China and other Asian regions: China saw solid investment from local smartphone markets and strong EV-related automotive capital investment; other Asia saw growing investment from production diversification, with particularly strong demand from India.
  • AI server-related investment in China and other Asia, and consumer electronics investment in Vietnam (computers) also contributed to growth.

• Operational Updates

  • The Machine Tool segment continues to maintain profitability through structural reforms including organizational restructuring.
  • The transition from NXT to NXTR is accelerating as customer equipment certification volumes increase.

1. Robot Solution Segment: Orders reached 40.6 billion yen, an 84.8% year-over-year increase, with revenue of 38.4 billion yen and operating profit of 6.1 billion yen. This segment accounts for 92.5% of total consolidated revenue. Geographically, China's revenue share increased 10 percentage points, other Asia's share increased 4 percentage points (India accounts for ~40% of other Asia's revenue), while Japan, North America, and Europe remained weak. By industry, communications accounts for ~30% of segment revenue, automotive increased on Chinese EV investment despite weak European and North American demand, 66% of FUJI-branded semiconductor-related revenue goes to China, and Fasford Technology's semiconductor-related business remains sluggish amid a weak memory market. By product model, the new high-speed mounter NXTR has accelerated adoption from the older NXT, and now holds the same revenue share as NXT in total segment sales. 2. Machine Tool Segment: Orders reached 2.4 billion yen, a 1.4% year-over-year increase, with revenue of 2.6 billion yen (an 8.7% year-over-year increase) and operating profit of 0.12 billion yen (a 255% year-over-year increase). This segment accounts for 6.3% of total consolidated revenue. Geographically, U.S. revenue stagnated due to tariff policy impacts, while Japan and China saw steady automotive-related capital investment.

• FUJI revised its full-year consolidated guidance: it raised the full-year order forecast by 8 billion yen and the full-year revenue forecast by 6 billion yen, following stronger-than-expected large project recovery and growth in China and Asia.
• Operating profit guidance is maintained at the initial forecast of ~30% year-over-year growth, as demand from higher average selling price regions (Europe and North America) remains lower than initial expectations.
• A full-year annual dividend of 80 yen per share is planned.

• Demand remains weak across all industries in Japan, North America, and Europe, especially in the automotive segment in Europe and North America.
• Higher share of lower average selling price China/Asia revenue creates downward pressure on overall selling prices and profitability.
• Fasford Technology's semiconductor-related business continues to face headwinds from the sluggish global memory market.
• U.S. Machine Tool segment demand is constrained by tariff policy impacts.
• Rising labor costs (from base pay hikes) increase fixed manufacturing and operating expenses, pressuring profitability.

Q: Is the selling price decline in the first quarter limited to the Chinese smartphone segment, or has low pricing spread to other industries in the Chinese market? Are discount levels for the new NXTR the same as for the older NXT? / A: In China, growing numbers of customers operate across smartphones, automotive, and server sectors, making it hard to maintain price differences across industries, leading to a slight overall downward trend in average selling prices. The company is implementing price increases for the new NXTR where possible, and does not carry over NXT-level discounts to NXTR. Price varies based on region, product, industry, and customer type: single regional projects in Europe can easier reflect product value in pricing, while global customers are harder to raise prices for. The company strategically manages pricing across different NXTR modules to minimize discount impacts, and the transition to NXTR has already partially offset selling price declines from higher China market share. Without the NXT to NXTR transition, overall selling price decline would have been larger. The positive impact of NXTR price improvements is already included in the current operating profit results.