Howa Machinery, Ltd.
Earnings Presentation Materials 2nd Quarter (Interim) Fiscal Year Ending March 2027
Net sales decreased 11.1% year-on-year to 10,460 million yen, while operating income increased 153.8% year-on-year to 972 million yen and ordinary income rose 151.0% year-on-year to 1,117 million yen. Full-year forecasts were left unchanged. By segment, building materials posted higher sales and profits, other segments showed mixed results. Special-purpose vehicles returned to a loss, and street sweepers saw reduced unit sales. Overall, sales declined this term but profitability improved significantly.
Key Figures
- Net Sales: 10,460 million yen (Year-over-Year -11.1%)
- Operating Income: 972 million yen (Year-over-Year +589 million yen)
- Ordinary Income: 1,117 million yen (Year-over-Year +672 million yen)
AI要約
Overview of Performance
In the 2nd quarter (interim), consolidated results showed a decline in net sales year-on-year, while operating income and ordinary income improved significantly. Notably, profitability in machine tool-related businesses returned to the black, and building materials achieved higher sales and profits. Conversely, firearms and special-purpose vehicles recorded losses and decreased profitability, and street sweepers experienced a decline in sales due to lower unit volumes. Overall, margin improvement progressed across the company.
Outlook and Segment Trends
The full-year forecast announced on May 15, 2026 remains unchanged. By segment, building materials are expected to see higher sales and profits, and machine tool-related businesses are expected to continue generating profit. Special-purpose vehicles may continue to face reduced sales and deteriorating profitability, though defense-related demand remains firm. Overall, the outlook prioritizes profit improvement while allowing for downside in sales.
Net Sales Trend
Operating Income Trend
Segment Net Sales
Comparison of Forecast and Actual
Howa Machinery, Ltd.
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