• A muted start – Q1 FY3/26 results indicated a uncharacteristically slow start for Restar, despite expectations of a back-loaded earnings profile. Although FX materially impacted the reported OP decline of 64.5% YoY, the underlying negative trend of 38.5% YoY illustrated 1) volume decline in the Device business unit (BU) stemming from the end of model production in the auto sector, and sluggish demand in industrial equipment, and 2) falling profitability at the Eco-solutions sub-segment within System BU, with intense competition in the power supply-demand adjustment market. On a positive note, the IT&SIer BU contributed accretive earnings YoY but with limited scale. The company has maintained FY guidance.
