2026 Year-End First Quarter Financial Results Overview

Performance Overview

Sales for the first quarter of fiscal year 2026 were 10,576 million yen, a 7.8% decrease from the same period last year. Operating income declined significantly to 634 million yen, a 70.3% decrease YoY. Ordinary income was 820 million yen, and net income attributable to shareholders of the parent company was 609 million yen, representing decreases of 56.5% and 52.3%, respectively. The operating profit margin was 6.0%, and the ordinary profit margin was 7.8%. Exchange rates were 156.9 yen per dollar, 183.7 yen per euro, and 22.7 yen per Renminbi.

Segment Performance and Factor Analysis

Sales by product and segment include 5,183 million yen (51.83 billion yen) for specialized graphite products, a 0.6% decrease YoY. The electronics segment decreased by 24.0%, affected by continued inventory adjustments for wafers used in single-crystal silicon manufacturing and compound semiconductors. General industry sales increased by 3.7%, with parts for machinery up 2.0% and electrical parts up 0.7%. The composite materials and other products declined by 20.4%, mainly due to a significant decrease in SiC-coated graphite products for semiconductor applications and the rebound from prior period adjustments. The main factors for the operating income decrease include fixed cost control and the decreased sales and gross profit margin resulting from earlier sales shifts for semiconductor applications and inventory impacts.

Shareholder Return Policy

The payout ratio target has been raised to 40%. With continuous profit growth, the company demonstrates a stance of stable shareholder returns while balancing investment in growth through ongoing capital expenditure.