Financial Summary for the Third Quarter of Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Overview of Performance

For the cumulative third quarter period of the fiscal year ending March 2026, consolidated sales amounted to JPY 149.974 billion (2.6% YoY increase), and operating income was JPY 7.613 billion (18.3% YoY increase). Ordinary income significantly increased to JPY 9.761 billion (53.1% YoY increase), while net income attributable to owners of parent was JPY 9.661 billion, representing a 29.2% decrease year-over-year. The Industrial Machinery segment saw decreased sales with increased profits, whereas the Rock Drill and Unic segments experienced decreases in both sales and profits, resulting in an overall decline in the Machinery business. On the other hand, the Materials business (Metal, Electronics, Chemical Products) recorded growth in both sales and profits, and the Real Estate business also increased sales and profits. The increase in non-operating income and gains on the partial sale of policy-holding shares contributed to the increase in ordinary income.

Financial Position and Revision of Earnings Guidance

At the end of the third quarter consolidated accounting period, total assets stood at JPY 272.197 billion, an increase of JPY 15.089 billion from the previous consolidated fiscal year-end, and net assets also increased to JPY 138.164 billion. The equity ratio was 49.7%, a decrease of 1.2 points compared to the same period last year. The full-year earnings guidance was revised upward, with sales forecast at JPY 206.2 billion, operating income at JPY 9 billion, and net income attributable to owners of parent at JPY 11 billion. By segment, the Industrial Machinery and Electronics segments are expected to fall short of previous forecasts, but the Rock Drill and Metal segments are anticipated to increase sales.