Q1 FY2026 Financial Results Summary [Japanese GAAP] (Consolidated)

Performance Overview

Consolidated results for the first quarter of FY2026 (January 1 to March 31, 2026) showed sales of ¥81.72 billion, a 1.7% increase YoY. Operating income decreased by 8.9% YoY to ¥6.345 billion, ordinary income declined by 1.9% to ¥6.181 billion, and net income attributable to the parent owners dropped by 47.1% to ¥1.556 billion. Amid ongoing economic uncertainties globally, the main Carbon Black business experienced revenue and profit declines due to the relocations of production bases in Thailand. However, Fine Carbon and Smeriting & Lining businesses saw increased sales.

Segment Performance and Future Outlook

Sales and operating income in the Carbon Black segment decreased due to production adjustments at the Thai subsidiary. The Fine Carbon segment saw increased sales driven by higher demand from memory semiconductors, although operating profit declined. The Smeriting & Lining business achieved revenue and profit growth despite shipment delays, thanks to licensing income. The Graphite Electrode segment faced decreased sales and profit due to sluggish crude steel production. The Industrial Furnace and Related Products segment increased sales owing to higher demand for MLCC, although operating profit decreased. Other businesses, including Friction Materials, showed increased sales and profit. The full-year outlook forecasts sales of ¥370 billion (up 14.6% YoY) and operating income of ¥28 billion (up 8.3% YoY).