Fiscal Year Ending March 2026 Financial Summary [Japanese GAAP] (Non-consolidated)

Overview of Performance

Net sales for the fiscal year ending March 2026 amounted to 268,095 million yen, representing an 18.0% decrease compared to the previous year. Operating income was 7,230 million yen (76.0% decrease YoY), ordinary income was 8,632 million yen (72.7% decrease YoY), and net income was 11,557 million yen (45.5% decrease YoY). The main factors were challenging steel market conditions and increased fixed costs due to reduced production volume; however, cost reduction efforts helped maintain an operating profit margin of 3.0%. On the financial front, the equity ratio rose to 75.8%, and net assets increased to 221,132 million yen.

Dividends and Future Outlook

The annual dividend is planned at 50 yen per share (25 yen interim and 25 yen year-end), with a forecast of 40 yen (20 yen interim and 20 yen year-end) for the fiscal year ending March 2027. The earnings guidance for the fiscal year ending March 2027 estimates net sales at 315,000 million yen (17.5% increase YoY), but a loss is projected with operating income at -4,000 million yen, ordinary income at -2,500 million yen, and net income at zero. Risks include steel exports from China and rising energy costs. Conversely, the company views responses to decarbonization and resource recycling as business opportunities and plans to enhance product lineups and reduce costs to strengthen competitiveness.