Financial Summary for Fiscal Year Ending March 2027, Second Quarter (Interim) [Japan GAAP] (Consolidated)

Overview of Results

For the second quarter (interim) of the fiscal year ending March 2027, consolidated net sales expanded to 177,703 million yen, up 14.9% year-over-year. However, operating income declined significantly to 6,112 million yen, ordinary income was 5,929 million yen, and interim net income attributable to owners of parent was 3,262 million yen, all below the prior-year levels. By segment, domestic steel experienced weaker demand and decreased profits, while overseas steel achieved higher sales and profits, contributing to overall revenue growth. Environmental recycling recorded higher sales and profits, and other businesses remained steady. A financial results briefing is planned, and earnings forecasts have been revised downward.

Outlook and Dividends

The full-year earnings forecast has been revised downward from the previous outlook, but the dividend forecast remains unchanged, and a dividend payment start date is set within the fiscal year. Future results may be affected by steel demand trends in the Americas, raw material cost movements, and scrap steel price trends. Based on interim results, whether domestic steel demand recovers in the second half will be a key focus.