Fiscal Year Ending March 2027 Second Quarter (Interim) Financial Summary [Japanese GAAP] (Consolidated)

Performance Summary

In the second quarter of the fiscal year ending March 2027, Chugai Ro Co., Ltd. reported revenue of 16,055 million yen, an increase of 8.7% year-over-year. Operating income rose significantly to 637 million yen, a 391.2% increase year-over-year, and ordinary income improved to 751 million yen. Net income attributable to owners of parent for the interim period was 285 million yen (a 27.1% decrease year-over-year), reflecting the positive effects of improved profitability but also the impact of provisions for structural improvements. By segment, heat treatment and plants contributed to higher revenue and profits, whereas development and overseas operations struggled. A special gain from the sale of available-for-sale securities is expected to be recorded, prompting a revision to the full-year outlook.

Outlook and Capital Allocation

Full-year forecasts have been revised to revenue of 40,300 million yen, operating income of 3,620 million yen, ordinary income of 3,720 million yen, and net income attributable to owners of parent of 2,787 million yen (earnings per share 396.96 yen). A special gain of approximately 700 million yen from the sale of available-for-sale securities is expected to be recorded. However, reallocation of costs related to GX projects and other adjustments may continue to affect segment-level results. The cash and liability positions could alter capital structure due to treasury stock acquisitions and the anticipated gain on sale of securities.