Fiscal Year Ending March 2026 Q3 Financial Summary [Japanese GAAP] (Non-consolidated)

Overview of Financial Results

In the third quarter of the fiscal year ending March 2026, net sales slightly declined to 23,446 million yen (down 0.9% YoY), but operating income increased to 4,520 million yen (up 0.8% YoY), ordinary income rose to 5,360 million yen (up 13.7% YoY), and quarterly net income grew to 3,978 million yen (up 5.4% YoY). The marine internal combustion engine business saw a decline in sales due to adjustments in operational load, whereas the repair and parts business performed strongly with a 24.5% sales increase, contributing to overall profit growth. Despite increased R&D expenses related to the development of next-generation decarbonized fuel engines, profitability improvements in the repair and parts segment absorbed these costs.

Outlook and Shareholder Returns

Full-year earnings guidance has been revised upward, forecasting net sales of 29,500 million yen (up 2.2% from previous forecast), operating income of 5,380 million yen (up 5.7%), ordinary income of 6,320 million yen (up 16.6%), and net income of 4,650 million yen (up 7.5%). Additionally, as a shareholder return measure, the year-end dividend per share has been raised by 6 yen to 66 yen, bringing the full-year dividend forecast to 86 yen (previous fiscal year was 76 yen). Order intake and order backlog have increased YoY, and the company aims for medium to long-term growth through the operation of a new marine internal combustion engine factory and the promotion of next-generation fuel engine development.