Financial Results for the Fiscal Year Ending March 2026 [Japanese Standards] (Consolidated)

Overview of Results

The consolidated net sales for the fiscal year ending March 2026 were JPY 209.717 billion (up 6.6% YoY), operating profit was JPY 18.826 billion (up 83.5% YoY), ordinary income was JPY 20.21 billion (up 76.8% YoY), and net income attributable to owners of parent was JPY 14.033 billion (up 55.6% YoY), achieving both revenue and profit growth. Comprehensive income increased significantly to JPY 22.068 billion (up 135.7% YoY). Earnings per share were JPY 178.37.

Segment Performance

In the Resources segment, the ore division posted net sales of JPY 66.97 billion (up 5.6% YoY) and operating profit of JPY 8.07 billion (up 10.4% YoY). The metals division achieved net sales of JPY 120.289 billion (up 5.5% YoY) and operating profit of JPY 6.744 billion (up 613.3% YoY). The machinery and environment business recorded net sales of JPY 15.95 billion (up 7.7% YoY) and operating profit of JPY 2.81 billion (up 0.7% YoY). The real estate segment saw net sales of JPY 4.746 billion (up 65.1% YoY) and operating profit of JPY 3.18 billion (up 97.7% YoY). The renewable energy business also experienced growth with net sales of JPY 1.868 billion (up 6.0% YoY) and operating profit of JPY 645 million (up 35.3% YoY).

Financial Position and Cash Flows

Total assets reached JPY 310.412 billion (up 29.2% YoY), and net assets increased to JPY 167.622 billion (up 10.3% YoY). The equity ratio decreased to 50.7%. Cash flows from operating activities resulted in a decrease of JPY 758 million, while investing activities saw a significant expenditure of JPY 32.83 billion. Financing activities generated a cash inflow of JPY 31.726 billion, bringing the end-of-period cash and cash equivalents to JPY 43.236 billion.

Share Capital and Treasury Stock

Following the stock split of one share for five shares implemented on October 1, 2025, the number of shares issued at the end of the period increased to 80 million shares, while treasury stock decreased to 1,317,977 shares. Earnings per share increased to JPY 178.37.

Future Outlook

The consolidated earnings forecast for the fiscal year ending March 2027 projects net sales of JPY 232.5 billion (up 10.9% YoY), operating profit of JPY 14 billion (down 25.6% YoY), ordinary income of JPY 11.5 billion (down 43.1% YoY), and net income attributable to owners of parent of JPY 12 billion (down 14.5% YoY), with earnings per share of JPY 152.51. The company aims for sustainable growth by responding to geopolitical risks in the Middle East, fluctuations in resource and energy prices, and restructuring initiatives in steel manufacturing, while promoting ROIC management and improving capital efficiency.