Fiscal Year 2026 Financial Results Briefing

Performance Overview

For the fiscal year ending March 2026, net sales reached 304.3 billion yen (up 2% YoY), operating income was 17.3 billion yen (up 45% YoY), and net income attributable to owners of the parent was 11.2 billion yen (up 44% YoY), setting a record high. The increase in operating income was driven by lower purchase costs, reduced factory overhead, and higher profits from subsidiaries. By division, the Steel Division posted decreased sales but increased profit; the Forging and Smart divisions saw both sales and profit increase; and the Stainless Steel Division experienced declines in both sales and profit. The balance sheet has improved through sales of held shares, growth investments, and shareholder returns aimed at asset efficiency enhancement.

Fiscal Year 2027 Outlook and Dividends

For FY March 2027, the forecast expects net sales of 310.0 billion yen (up 2% YoY), operating income of 17.5 billion yen (up 1% YoY), and net income attributable to owners of the parent of 11.3 billion yen (flat YoY). The impact of rising purchase costs is not factored in; instead, the company plans to cover it through price increases, increased sales volume, and cost reductions. Dividends for FY March 2026 will be increased from 62 yen to 69 yen per share with an additional special dividend, totaling 145 yen. For FY March 2027, the company plans to pay 72 yen as ordinary dividend plus 78 yen as special dividend, totaling 150 yen. The payout ratio is expected to remain at 85.0%.