Financial Summary for the Third Quarter of the Fiscal Year Ending March 2026 (Japanese GAAP) (Consolidated)

Performance Overview

For the cumulative consolidated third quarter period of the fiscal year ending March 2026, net sales reached 54.582 billion yen (up 5.5% YoY), operating income was 3.25 billion yen (up 19.7% YoY), ordinary income was 3.7 billion yen (up 20.1% YoY), and net income attributable to owners of parent was 2.393 billion yen (up 49.0% YoY). The steady performance of existing businesses and the consolidation of Riken Kogyo Co., Ltd., a subsidiary specializing in snow and wind protection products, contributed to the results. On the profit side, investments in human resources and growth as well as goodwill amortization impacted earnings; however, the resolution of provisional accounting treatments from the previous period resulted in increased profits. EBITDA reached 6.21 billion yen (up 16.7% YoY).

Segment Performance Trends

In the public sector, soundproof wall materials, traffic safety products, protective fences, and artificial turf performed strongly, resulting in sales and profits surpassing the previous year. Conversely, sales of electronic products declined, and sales of artificial wood were sluggish. In the private sector, profits were weak due to reduced sales of mesh fences and the impact of growth investments, although privacy fences and soundproof privacy fences performed well. The general merchandise and agriculture-related businesses saw stagnated demand for packaging and binding bands, but growth in stretch film packaging machines and agriculture-related products, as well as strong performance from affiliated group companies, offset the weakness.

Financial Position and Cash Flow Status

Total assets increased by 1.493 billion yen from the previous fiscal year-end to 141.077 billion yen, liabilities increased by 1.54 billion yen to 43.682 billion yen, and net assets decreased by 46 million yen to 97.395 billion yen, with an equity ratio of 67.8%. Cash flows from operating activities resulted in an inflow of 5.38 billion yen, investing activities recorded an outflow of 3.793 billion yen, and financing activities recorded an outflow of 2.24 billion yen.

Dividends and Earnings Guidance

The annual dividend forecast for the fiscal year ending March 2026 is 72 yen (interim 36 yen, year-end 36 yen), unchanged from the previous forecast. The consolidated earnings guidance also remains unchanged from the announcement on May 13, 2025, projecting net sales of 79 billion yen, operating income of 6.4 billion yen, and net income attributable to owners of parent of 4.3 billion yen.