Nabtesco Corporation (6268) Q1 2026 Earnings Call Transcript

Q&A for FY2026/12 Q1 Results Briefing Date：April 30, 2026（Thursday）16:30-17:30 No 1

Items Overall

Q

A

How do you assess the impact

We do not believe there is any direct

of risks arising from the

impact on sales at this stage. However, we

situation in the Middle East?

are concerned about potential increases in procurement

costs.

While

no

direct

impacts such as supply shortages or production stoppages have occurred so far, the duration of the situation remains uncertain, making it difficult to quantify the potential impact at this time. 2

Overall

In response to price increase

While we do not have a complete picture of

requests from suppliers

all specific price increases, we are mainly

following the situation in the

facing indirect cost increase requests

Middle East, which specific

centered

components or raw materials

oils/lubricant. These increases relate more

are seeing price increases?

to auxiliary materials rather than core

on

paint

thinners

and

components. Our basic policy is to appropriately pass on these cost increases through pricing. 3

Overall

Could you explain your policy

At present, we are in a slightly cash-rich

regarding future cash

position. However, when viewed over the

allocation?

three-year period of the medium-term management plan (From FY2025 to FY2027), we do not expect any significant change in our cash position. Our priority is to steadily execute the R&D and capital investments outlined in the medium-term plan and to achieve future growth through these investments.

4

Overall

What were the factors behind

For CMP, profitability improved in Q1 due

the

to increased utilization ratio in Japan,

high

operating

profit

margins in CMP and ACB in which generated higher utilization gains, as well as progress in price pass-through

Q1?

and delays in the incurrence of certain expenses. For ACB, while there is some seasonality between Q1 and Q4, we were able to improve profit margins by reducing fixed costs

and

profitability

expenses, challenges

addressing in

overseas

operations. 5

CMP

Regarding orders for precision

We expect the strong order environment to

reduction gears, orders appear

continue. However, there remains some

to have remained strong in Q1

uncertainty regarding the timing and

FY2026. Is there any prospect

certainty of the recovery in capital

that orders will accelerate

investment

further going forward?

equipment in North America, which we

for

automotive-related

had been expecting in the FY2026/H2. 6

CMP

For precision reduction gears,

Our understanding is that in Q1, we

were there any signs in Q1

worked through orders received toward the

FY2026 of front-loaded orders

end of last year. We do not believe that

driven

customer

recent orders include any front-loaded

concerns

demand driven by such procurement

by

procurement

following the deterioration of

concerns.

the situation in the Middle East? 7

TRS

Orders in the TRS segment

The primary driver of strong order growth

grew strongly in Q1. What

was the aircraft equipment business. While

were the main contributing

there were some impacts from bulk orders

factors?

for commercial aviation customers, even after taking these into account, both sales and orders in the aircraft equipment business have been growing at a solid pace.