FY March 2026 Q3 Financial Results Presentation Materials

Performance Overview

Net sales for the third quarter (April to December) of FY March 2026 amounted to 603.3 billion yen, a decrease of 12.2 billion yen year-on-year. Operating income increased by 5.1 billion yen to 19.3 billion yen, and the operating margin rose 0.9 percentage points to 3.2%. Segment-wise, the Bearings and Others segment recorded net sales of 251.8 billion yen, operating income of 6.7 billion yen, and an operating margin of 2.7%, reflecting a year-on-year decline. Although automotive demand centered in Japan declined, increased demand for aftermarket and industrial machinery led to higher net sales. Meanwhile, the CVJ Axle segment posted net sales of 351.5 billion yen, operating income of 12.6 billion yen, and an operating margin of 3.6%, marking a year-on-year increase. Despite decreased demand in the Americas, Europe, and China and semiconductor supply shortages, profits rose due to cost reductions and passing US tariffs on to selling prices.

Capital and Financial Position and Outlook

Inventories stood at 260.7 billion yen, an increase of 16.3 billion yen year-on-year, and free cash flow rose by 7.0 billion yen to 12.6 billion yen. Capital expenditures totaled 21.1 billion yen, up 5.4 billion yen year-on-year, while depreciation and amortization decreased by 1.8 billion yen to 30.1 billion yen. Interest-bearing debt was 343.4 billion yen, a reduction of 13.5 billion yen year-on-year. The full-year earnings forecast for FY March 2026 remains unchanged from the November 2025 announcement at net sales of 805 billion yen, operating income of 26.0 billion yen, and an operating margin of 3.2%. Structural reform effects are progressing, and efforts to improve profitability will continue.