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

Overview of Business Performance

For the consolidated results in the third quarter of the fiscal year ending March 2026, net sales decreased by 3.2% year-over-year to JPY 232,698 million; however, operating income increased by 38.6% to JPY 13,442 million and ordinary income rose by 28.0% to JPY 12,659 million, achieving profit growth. Net income attributable to owners of parent for the quarter decreased by 13.1% to JPY 7,943 million. In the domestic steel business, net sales declined due to labor shortages at construction and logistics sites and project delays caused by rising material costs, resulting in decreased operating income. Conversely, the overseas steel business saw increases in both net sales and operating income supported by expansion in Vietnam and North America. The environmental recycling business posted lower sales and profits due to a challenging competitive environment.

Financial Position and Revision of Earnings Forecast

Total assets increased by 0.5% from the end of the previous fiscal year to JPY 354,685 million, net assets rose 1.2% to JPY 211,635 million, and the equity ratio improved to 57.8%. The full-year earnings forecast for the fiscal year ending March 2026 is revised to net sales of JPY 317,000 million (1.9% decrease from previous forecast), operating income of JPY 17,000 million (unchanged), ordinary income of JPY 16,000 million (unchanged), and net income attributable to owners of parent of JPY 10,500 million (unchanged). The dividend forecast remains at JPY 90 per annum.