Financial Results for the First Quarter of the Fiscal Year Ending December 2026 (127th Term)

Overview of Business Performance

The consolidated financial results for Q1 FY2026 show net sales of ¥19.4 billion, unchanged from the same period last year. Ordinary income was ¥1.1 billion (up ¥700 million YoY), and core operating profit was ¥1.6 billion (up ¥1.1 billion YoY). Net income attributable to owners of the parent increased by ¥600 million to ¥600 million. The increase in profit was supported by higher ash processing volume in the incineration ash resource recycling business and stable high metal melting market conditions. Despite some product manufacturing termination due to sluggish battery material demand and inventory impacts, overall profit increased.

Segment Performance and Full-Year Outlook

The alloy iron segment saw a decrease in sales domestically but improved profit due to favorable operations; the functional materials segment experienced increased sales and profit driven by steady demand for battery-related materials; the incineration ash resource recycling segment achieved higher sales and profits owing to increased processing volume and market upturn. The full-year consolidated outlook for FY2026 projects net sales of ¥80 billion (up ¥3 billion YoY), ordinary income of ¥7 billion (up ¥4.3 billion), and core ordinary income of ¥6 billion (up ¥700 million). The impact of Middle East geopolitical factors is expected to be minimal, and ongoing monitoring will continue.