Notice Regarding the Difference Between Full-Year Consolidated Earnings Guidance and Actual Results for the Fiscal Year Ending November 2025

Earnings Overview

For the full-year consolidated earnings of the fiscal year ending November 2025, net sales came to 235,903 million yen, down 2.9% from the previously announced forecast of 243,000 million yen. The main factors included delays in capital expenditures for the automotive sector and a decrease in demand for industrial machinery. On the other hand, operating income exceeded the forecast of 8,600 million yen, reaching 9,773 million yen (13.6% increase), ordinary income also surpassed the forecast of 6,600 million yen at 8,370 million yen (26.8% increase), and net income attributable to owners of parent rose to 5,250 million yen (31.3% increase) against the forecast of 4,000 million yen. The profit increase is attributable to restructuring of overseas production bases, factory relocation, production consolidation as part of structural reforms, and the yen's depreciation against foreign currencies.

Outlook and Impact

The decline in net sales was due to decreased operating rates; however, profit improvements were observed through the promotion of structural reforms and a favorable foreign exchange environment. These initiatives are expected to contribute to strengthening the earnings foundation going forward. Investors should closely monitor trends in profit margins and the recovery status of capital expenditures.