Alps Alpine Co., Ltd.

Q1 FY2026 revenue was JPY238.9 billion, up JPY5.3 billion YoY, with a reported negative FX impact of JPY13.3 billion on revenue. Operating profit was JPY3.7 billion, up JPY2.5 billion YoY, despite a JPY3.1 billion negative currency effect. Ordinary profit fell to JPY1.2 billion and net profit attributable to owners of the parent was a loss of JPY2.8 billion, both hurt by a JPY3.7 billion foreign exchange loss. By segment, components sales were JPY82.9 billion and operating profit JPY6.2 billion; sensor and communication sales were JPY19.8 billion with operating loss of JPY2.1 billion; mobility sales were JPY131.4 billion with operating loss of JPY500 million. First-half FY2026 guidance was revised upward to revenue of JPY498 billion, operating profit of JPY12.1 billion, ordinary profit of JPY9 billion, and net profit of JPY2 billion. The company said it assumes an exchange rate of JPY145 per US dollar for Q2 and left the initial H2 plan unchanged. Tariff impact was updated from an initial operating-profit hit of JPY23 billion for the full year to about JPY800 million to JPY1 billion in H1, while H2 assumptions were left unchanged.

CEO Hideo Izumi emphasized that the quarter showed tangible progress against the medium-term plan, especially in mobility restructuring and the phasing out of low-profit products. He said Q1 strength in actuators was tied to unusual rare-earth supply issues, but that from Q2 onward results should return to plan rather than reflect a lasting market-share gain. He also pointed to growth momentum in mmWave sensors, stylus-related force sensors, and mobile photo printers as evidence that the company is beginning to realize its FY2026 improvement goals.

CFO Satoshi Kodaira focused on the financial bridge from Q1 to the raised H1 outlook. He said the company repaid JPY27.5 billion of short-term borrowings, cutting cash and interest-bearing debt by JPY31.8 billion, and that shareholders’ equity fell by JPY13.6 billion mainly from dividends and buybacks, though the equity ratio improved to 56.8%. On profitability, he explained that Q1 operating profit improved on revenue growth, lower R&D spending, better fixed costs, and inventory-related effects, while foreign exchange and mix pressure offset some of that benefit. He also said mobility Q1 net development costs were about JPY4.7 billion versus an initial plan of JPY7.4 billion, and that some of the savings shift into Q2, keeping H1 mobility losses roughly in line with plan.

Analysts focused on three issues: U.S. tariffs, the actuator demand spike, and how mobility development costs would move through the year. Management said H1 tariff impact is now only about JPY800 million to JPY1 billion in operating profit versus an earlier gross estimate of about JPY11.5 billion for H1, while H2 remains unchanged for now because the market effect is still hard to assess. On actuators, management said Q1 benefited from temporary magnet procurement issues, but Q2 should revert to the initial seasonal plan without assuming any extra competitive upside. On mobility, Kodaira said Q1 benefited from lower-than-planned development spend, but some of that shifts into Q2, keeping the H1 loss forecast at JPY1.2 billion and reinforcing the H2-weighted profit structure.