Notice of Differences between the Earnings Forecast and Actual Results for the Second Quarter of the 2026 Fiscal Year

Overview of results

In the second quarter of the 2026 fiscal year, THK saw an uptick in consolidated net sales and revenues driven by heightened AI demand and a weaker yen, with substantial improvements in operating income, ordinary income before income taxes, and interim profit attributable to owners of the parent. Notably, the completion of the transfer of the transportation equipment business contributed significantly to the gains from business transfers. In terms of standalone performance, gains from the disposal of equity in THK (Dalian) Precision Industry Co., Ltd. also contributed to beating the interim net profit forecast.

Outlook and impacts

As long as the yen remains weak and AI-related demand persists, upside potential may continue. While the gains from transfer are temporary, expanded capital expenditure is expected to improve order intake domestically and internationally. Going forward, attention will focus on the trends from the third quarter onward and the continued profit contributions from individual segments.