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

Summary of Business Performance

For the nine months ended Q3 2026, consolidated net sales were JPY 118,021 million (6.5% decrease YoY), and operating income was JPY 3,418 million (60.2% decrease YoY). Ordinary income increased to JPY 47,888 million (28.2% increase YoY), and net income attributable to owners of the parent rose to JPY 33,867 million (77.4% increase YoY). The steel segment (Japan, Thailand, Indonesia) experienced declines in sales and profits due to demand weakness and price competition, whereas the U.S. operations maintained high profitability benefiting from strengthened tariffs. An additional loss of JPY 5.6 billion related to the transfer of shares in the Middle East business was recorded.

Financial Position and Outlook

Total assets decreased to JPY 635,546 million compared to the end of the previous fiscal year, and net assets stood at JPY 578,087 million. Cash flow from operating activities increased by JPY 41,300 million, cash flow from investing activities decreased by JPY 69,040 million, and cash flow from financing activities decreased by JPY 43,681 million, resulting in cash and cash equivalents declining to JPY 47,035 million. The full-year earnings forecasts have been revised upward to net sales of JPY 161,000 million (increase of JPY 5,000 million from previous forecast), operating income of JPY 4,000 million (increase of JPY 500 million), ordinary income of JPY 60,000 million (increase of JPY 4,000 million), and net income attributable to owners of the parent of JPY 53,000 million (increase of JPY 15,000 million). Special gains including approximately JPY 13 billion from the sale of investment securities are expected.