Notice on the difference between the consolidated performance for the second quarter of the consolidated fiscal year ending December 2026 and the results, and revisions to full-year earnings forecast due to special losses

Overview of results

For the interim period of the fiscal year ending December 2026, while strengthening the sales framework of the tile business and expanding high-value-added products, demand for the split residential and rental housing market declined and costs rose. Higher material costs, fuel costs, transportation costs, and a weaker yen also affected results, causing a sharp drop in ordinary income and interim net income. A provision for doubtful accounts of 300 hundred million yen was recorded as a special loss. The storage battery, generator, and real estate businesses also underperformed, leading to downward revisions to the full-year forecast.

Outlook and impact

The full-year consolidated earnings forecast has been revised to net sales of 5,200 hundred million yen, operating loss of 380 hundred million yen, ordinary loss of 350 hundred million yen, net income attributable to owners of the parent of 810 hundred million yen, and earnings per share of -25.27 yen. Persistent high material costs, logistics costs, and market uncertainty are expected to continue, and recovery will depend on trends in the residential condo market and improvement in exterior wall tile demand.