Financial Summary for the Third Quarter of the Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Overview of Performance

During the cumulative third quarter period of the fiscal year ending March 2026 (April 1, 2025 to December 31, 2025), domestic steel demand remained sluggish, and recovery in demand from major customers in industrial and construction machinery sectors was limited. Due to the impact of molten steel leakage accidents in the previous consolidated fiscal year and a decline in sales prices, net sales decreased significantly to 36.809 billion yen (13.9% decrease YoY), operating income to 703.5 million yen (79.9% decrease YoY), and net income attributable to owners of parent to 604.2 million yen (74.4% decrease YoY). By segment, the steel-related business saw profit decline due to sales price reductions and increased manufacturing costs; the rental business posted profit growth driven by price revisions and increased orders; the logistics business faced profit decline owing to reduced handling volumes and cost increases; and the engineering business experienced profit decrease due to the loss of major projects.

Revision to Earnings Guidance and Financial Position

Revised full-year consolidated earnings guidance for the fiscal year ending March 2026 projects net sales of 516.0 billion yen (1.1% increase YoY), operating income of 1.0 billion yen (63.0% decrease YoY), ordinary income of 1.1 billion yen (57.7% decrease YoY), and net income attributable to owners of parent of 1.1 billion yen (36.5% decrease YoY), reflecting a significant profit decline. The equity ratio declined to 86.2% from 89.0% in the previous fiscal year but financial soundness is maintained. The number of shares outstanding remains unchanged at 28,000,000 shares. The dividend forecast is maintained at an annual dividend of 104 yen (an increase from the previous fiscal year).