Fiscal 2026 Second Quarter Earnings Presentation

Overview of Performance

In the first half of fiscal 2026, revenue was 330.7 hundred million yen, operating income was 26.1 hundred million yen, and adjusted operating income was 23.2 hundred million yen, representing profit growth year-on-year. By segment, Special Steel Materials, Functional Materials, Magnetic Materials, Automotive Parts, Industrial Machinery Parts, Engineering, Distribution and Services performed steadily. Taking into account second-half external environment assumptions, adjusted operating income for fiscal 2026 is projected at 45.0 hundred million yen and operating income at 46.0 hundred million yen for the full year. The interim dividend will be increased by 4 yen to 28 yen per share, raising the annual dividend to 56 yen per share.

Shareholder Returns and Future Outlook

The dividend payout target is set at 30% or more, with a policy of maintaining DOE at a minimum of 2.5%. Share buybacks are also being considered to preserve flexibility in capital policy. In the second half, amid increasing demand for high-performance materials such as stainless steel for semiconductor manufacturing equipment and free-forging products, profit levels are expected to be maintained and expanded. The consolidation effect of Tohoku Special Steel may also contribute.