FY March 2026 Q3 Financial Summary [IFRS] (Consolidated)

Overview of Business Results

For the third quarter of the fiscal year ending March 2026, consolidated revenue was ¥430,230 million, down 0.9% year-over-year. The primary factor was a decline in orders related to the automotive sector. Operating income was ¥31,190 million (8.5% decrease YoY) and adjusted operating income was ¥29,728 million (12.7% decrease YoY), impacted by recording a one-time expense of ¥2,716 million associated with the high-alloy process reform project. Net income attributable to owners of the parent was ¥21,767 million (6.1% decrease YoY). By segment, specialty steel materials saw decreases in both revenue and profits; functional materials and magnetic materials increased profits; automotive parts and industrial machinery parts posted higher revenue but lower profits; and engineering segment showed increases in both revenue and profits.

Financial Position and Earnings Forecast Revisions

Total assets increased by ¥32,282 million from the previous fiscal year-end to ¥815,257 million, mainly due to increases in trade receivables and tangible fixed assets. Total equity increased by ¥20,235 million to ¥489,379 million, and the equity ratio attributable to owners of the parent rose to 55.0%. The number of treasury shares increased following share buyback activities. The full-year consolidated earnings forecast has been revised to revenue of ¥575.0 billion, operating income of ¥36.0 billion, and net income attributable to owners of the parent of ¥25.5 billion, reflecting impacts from soaring raw material prices, declines in sales prices, and higher fixed costs.