Panasonic Holdings Corporation (0QYR) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello, this is Juanico. Thank you very much for joining us. I will now give the overview of the fiscal 2026 first quarter financial results. First, the summary. Sales increased in all segments, but overall sales decreased with the deconsolidation of automotive. By business, sales of generative AI-related businesses in industry and energy increased, in addition to increased sales of process automation and connect. Adjusted operating profit increased overall due to increased profit in all segments, offsetting the impact of U.S. tariffs and the automotive deconsolidation. Net profit increased due to an improvement in income taxes, despite a deterioration in non-operating income and loss. Operating cash flows decreased year-on-year due mainly to the automotive deconsolidation. fiscal year March 2026 full year forecast, the group-wide forecast remains unchanged. The impact of U.S. tariffs from FY March 26 Q2 onward has not been factored into the current forecast since the situation remains fluid and requires more time for careful assessment given the recent major developments. The forecasts by segment are revised for CONNECT and other elimination and adjustments. Now the details. For the consolidated financial results, sales decreased year-on-year by 11% to $1,896.7 billion, while sales excluding automotive increased by 2% year-on-year. Adjusted operating profit increased to $91.5 billion, operating profit increased to $86.9 billion, and net profit increased to $71.5 billion. These are results by segment. Next few slides provide the year-on-year variance analysis for sales in adjusted operating profit. First, the sales analysis. First, the sales analysis by segment. In lifestyle, sales increased on steady sales of consumer electronics, HVAC, and the electrical constructio...