Fiscal Year Ending March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Business Performance

For the cumulative third quarter of the fiscal year ending March 2026, net sales increased 2.4% year-over-year to 1,965.480 billion yen. Expansion of transactions in the primary metals business and overseas sales subsidiaries contributed to this growth. Conversely, operating income decreased 12.5% year-over-year to 41.472 billion yen, ordinary income decreased 15.7% to 36.438 billion yen, and net income attributable to owners of parent decreased 19.3% to 25.669 billion yen. The main reasons for the profit decline were the deterioration in profitability of the recycled metals business and increased personnel expenses.

Performance by Segment

The Steel Business recorded net sales of 806.805 billion yen, down 7.6% year-over-year, while segment profit grew 18.5% to 28.217 billion yen. The Primary Metals Business saw net sales increase 23.6% to 176.425 billion yen, but profit plummeted 89.8% to 0.304 billion yen. The Recycled Metals Business achieved net sales of 196.718 billion yen, up 10.1%, but posted a loss of 2.051 billion yen. The Food Business posted net sales increase of 9.7% to 118.546 billion yen with profit increasing 48.5% to 3.312 billion yen. The Energy & Lifestyle Materials Business reported net sales down 1.7% to 279.437 billion yen and profit down 25.4% to 5.692 billion yen. Overseas sales subsidiaries recorded net sales growth of 18.3% to 381.221 billion yen, but profit declined 32.3% to 4.113 billion yen.

Overview of Financial Position

Total assets decreased 1.7% from the previous fiscal year-end (consolidated) to 1,145.680 billion yen. Liabilities declined 4.6% to 740.371 billion yen, and interest-bearing debt decreased 9.3% to 346.794 billion yen. Net assets increased 4.1% to 405.309 billion yen, and the equity ratio rose from 32.9% to 34.9%. The net debt-to-equity ratio stands at 0.8 times (0.7 times after considering hybrid loans).

Earnings Forecast and Dividends

There is no change to the consolidated earnings forecast for the fiscal year ending March 2026. Net sales are projected at 2.6 trillion yen (up 1.8% year-over-year), operating income at 55 billion yen (down 10.6%), ordinary income at 55 billion yen (down 7.9%), and net income attributable to owners of parent at 40 billion yen (down 12.1%). The annual dividend is expected to be 250 yen (interim 125 yen, year-end 125 yen), with no revisions from the latest dividend forecast.