Alpha corporation posts Q1 revenue, profit decline amid strategic gains

Alpha Corporation announced its Q1 FY2026 financial results, revealing a decline in both revenue and profit. Net sales decreased by 1.528 billion yen year-on-year to 16.703 billion yen, an 8.4% reduction. Operating profit significantly dropped to a loss of 94 million yen, a decrease of 259 million yen from the previous year, resulting in a -0.6% operating profit margin. This was despite a 2.3 percentage point improvement in the direct material cost ratio, which was offset by a 0.7 percentage point decline in gross profit margin due to increased processing costs.

The company's automobile parts business reported a sales decrease of 7.7% year-on-year, totaling 12.908 billion yen, with an operating loss of 383 million yen. The security equipment business also experienced a sales decline of 10.8% to 3.794 billion yen, and a substantial operating profit decrease of 30.2% to 536 million yen.

Geographically, North America and Asia saw significant sales declines of 18.7% and 15.6% respectively. However, the company recorded extraordinary income of 364 million yen, primarily from the liquidation of a subsidiary in China, and foreign exchange gains of 49 million yen. Looking ahead to FY2026, Alpha Corporation forecasts sales of 70 billion yen and an operating profit of 1.5 billion yen.