Fiscal Year Ending January 2026 Financial Results

Overview of Business Performance

Net sales for the fiscal year ending January 2026 totaled ¥218,329 million, marking a 1.6% increase year-over-year, while operating income was ¥12,651 million, a 21.0% decrease, and net income was ¥3,151 million, a 74.2% decrease. The increase in sales was driven by higher sales volumes of drive and generation motor cores in electric components (motor cores) and increased demand for consumer electronics in electronic components. However, profits were pressured by a special loss of ¥3,951 million related to the slowdown in BEV growth in the European market and a loss of ¥2,591 million in European operations. Capital expenditure increased by 21.2% year-over-year to ¥30,116 million, reflecting continued proactive investments for future business growth.

Outlook and Shareholder Returns

For the fiscal year ending January 2027, the company forecasts net sales of ¥233.0 billion and operating income of ¥11.0 billion. Revenue growth is expected due to steady motor core demand and a moderate recovery in lead frame demand; however, operating income is projected to decline due to upfront investment costs in electric components. Dividends are planned at ¥19 per share in line with the shareholder return policy. The medium-term management plan has been revised to adjust financial targets and shift strategy reflecting changes in the market environment, incorporating the slowdown of growth in the BEV market.