2026 Year-End Q1 Financial Results Explanation Materials

Performance Overview

In the first quarter of the 2026 fiscal year ending December, sales increased primarily due to higher demand for electrical discharge machining centers. Operating income significantly increased due to higher gross profit and improved factory utilization. Ordinary income and net income attributable to owners of parent also increased substantially, supported by forex gains of 200 million yen and gains from asset sales of 300 million yen, in addition to the rise in operating profit.

Segment Performance

The machine tool segment achieved net sales of 16.6 billion yen (up 22.4% YoY) and segment profit of 2.3 billion yen (up 700 million yen), reflecting substantial growth. The industrial machinery segment saw demand for optical connectors and other products increase, with net sales of 2.3 billion yen (up 1.2%), and segment profit remained flat at 0 billion yen. The food machinery segment experienced declines, with net sales of 1.3 billion yen (down 14.9%) and segment profit of 200 million yen (down 100 million yen). The other segments also saw decreases in both net sales and profit.