Financial Summary for the Year Ending March 2026 [Japanese GAAP] (Consolidated)

Performance Overview

The consolidated performance for the year ending March 2026 saw sales revenue of ¥51.13 billion, a 0.1% increase from the previous year. Operating profit declined sharply by 65.9% to ¥923 million, ordinary income decreased by 57.2% to ¥1,113 million, and net income attributable to owners of the parent decreased by 26.4% to ¥1.275 billion. The main reasons include recovery efforts following the steelmakers' leakage accident and stable operation of new electric furnaces, which improved orders, but the worsening market conditions led to a decline in selling prices, compressing profits.

Segment-wise Performance

The steel-related business saw an increase in sales quantity but a decline in profit due to falling sales prices, with sales of ¥48.346 billion and operating profit of ¥54.7 million. The rental business recorded ¥785 million in sales and ¥122 million in operating profit, both increasing. The logistics business had sales of ¥503 million and operating profit of ¥114 million, both decreasing. The engineering business showed sales of ¥1.468 billion and operating profit of ¥66 million, also declining.

Financial Position and Cash Flows

Total assets were approximately ¥84.579 billion, almost unchanged from the previous year. Net assets decreased by ¥286 million to ¥75.736 billion. Cash flows from operating activities were negative ¥5.839 billion, mainly due to an increase in accounts receivable and inventory. Investing activities resulted in income of ¥7 million; financing activities saw expenditures of ¥2.755 billion. The balance of cash and cash equivalents at the end of the period was ¥12.856 billion.

Outlook and Dividends

For the fiscal year ending March 2027, consolidated earnings are forecasted to reach ¥69.6 billion in sales (a 36.2% increase YoY), ¥1.2 billion in operating profit (30.0% increase), ¥1.5 billion in ordinary income (34.7% increase), and ¥900 million in net income attributable to owners of the parent (a 29.4% decrease). The planned year-end dividend is ¥54, totaling an annual dividend of ¥104. The interim dividend is scheduled at ¥56, with a projected total of ¥113 for the year, including ¥57 at the end of the period.