Fiscal Year 2025 Q3 Earnings Presentation Materials

FY2025 Q3 Financial Results Overview

Net sales for the third quarter of fiscal year 2025 increased to 841.6 billion yen (YoY +103.2 billion yen), while operating income declined to 34.0 billion yen (YoY -7.8 billion yen). Sales volume was 993 thousand tons, up 48 thousand tons year-over-year. Factors contributing to this included expanded scrap processing capacity in the U.S., increased exports from Japan, and price revisions. However, earnings were pressured by foreign exchange effects (strong dollar vs. parts cost) and uncertainties in the North American automotive sector. Adjusted EBITDA was 63.7 billion yen (YoY -6.4 billion yen).

Full-year Earnings Guidance and Future Outlook

Assuming continuation of the business environment seen in Q3, the full-year earnings guidance was revised upward. Operating income is forecasted at 48.0 billion yen (up 2.0 billion yen from the November announcement), and net income at 27.0 billion yen (up 4.0 billion yen). The annual dividend is planned to increase to 45 yen per share (up 3 yen per share). For Q4 and beyond, the company will continue producing and selling high-quality products, implement ongoing price revision measures, alleviate supply chain disruptions in the U.S., strengthen shipments from Japan and Thailand, and enhance its aerospace and defense materials business.