FY March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Performance

During the cumulative third quarter consolidated period of FY March 2026, net sales increased 8.8% YoY to 73,729 million yen, and operating income rose 12.0% to 4,839 million yen. Ordinary income decreased 5.8% YoY to 5,540 million yen, and net income attributable to owners of parent declined 23.5% to 4,627 million yen. The increase in net sales was driven by favorable performance from consolidated subsidiaries in the Energy and Product segments, but the decline in net income was attributed to reduced gains on sales of policy holdings and recording of litigation-related loss provisions.

Segment Performance and Financial Position

The Energy segment posted net sales of 26,892 million yen (up 4.6% YoY) with segment profit up 1.3% YoY after deducting negative goodwill. The Industrial Machinery segment achieved net sales of 23,918 million yen (up 33.1% YoY) and turned profitable in segment profit. The Product segment recorded net sales of 22,919 million yen (down 4.7% YoY) but segment profit rose 13.0%. Total assets increased 26.9% to 164,320 million yen, and net assets grew 5.0% to 50,031 million yen; however, the equity ratio declined from 36.3% to 30.1%.

Business Combinations and Future Outlook

During this Q3 consolidated accounting period, Asahi Sanac Co., Ltd. was made a wholly owned subsidiary, and goodwill of 11,518 million yen was recorded. This move aims to strengthen the Industrial Machinery segment and advance business development collaboration. The full-year earnings guidance for FY March 2026 forecasts net sales of 108,000 million yen (up 15.2% YoY), operating income of 7,600 million yen (up 17.2% YoY), while net income attributable to owners of parent is expected to be 6,500 million yen (down 16.7% YoY). The decline in net income reflects special losses and reduced gains on sales of policy holdings.