Financial Summary for Q3 of Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Overview of Business Results

In the cumulative Q3 period of the fiscal year ending March 2026, net sales amounted to JPY 130.047 billion (23.7% YoY increase), supported by contributions from the refractory segment’s Dutch subsidiary Gouda and consolidation of the Brazilian company Reframax in the engineering segment. Meanwhile, operating income was JPY 8.950 billion (10.0% YoY decrease), impacted by increased goodwill amortization and profit declines in the insulation and advanced equipment segments. Net income attributable to owners of the parent for the quarter significantly rose to JPY 29.985 billion (278.4% YoY increase), due to gains on sales of fixed assets.

Financial Position and Revision of Earnings Guidance

Total assets increased to JPY 237.513 billion (up JPY 42.299 billion from the previous fiscal year-end), net assets rose to JPY 127.429 billion (up JPY 33.601 billion), and the equity ratio improved to 50.2%. The full-year earnings forecast for the fiscal year ending March 2026 remains unchanged with net sales of JPY 176.0 billion and net income attributable to owners of the parent at JPY 31.0 billion. However, EBITDA and operating income forecasts have been revised downward due to some acquisition-related expenses and a deterioration in sales mix in the insulation segment, with operating income revised to JPY 13.0 billion (10.3% decrease from the previous forecast). The dividend forecast remains unchanged at JPY 90 per annum.