Financial Results for the Fiscal Year Ending December 2025 & Mid-Term Management Plan 2028 Presentation Materials

Business Results for the Fiscal Year Ending December 2025

Net sales for the fiscal year ended December 2025 were JPY 174.020 billion (up 5.6% Year-over-Year), supported by a recovery in sales of compact outdoor power equipment (OPE), including robotic lawnmowers in the European market, and growth of engine products for home centers in the North American market. Operating income reached JPY 19.722 billion (up 0.4% YoY), setting a new record high. However, ordinary income and net income declined due to foreign exchange losses and corporate tax adjustments. By segment, compact outdoor power equipment performed well with net sales of JPY 131.989 billion (up 8.7%) and operating income of JPY 28.204 billion (up 1.9%). In contrast, general industrial machinery and agricultural management machinery experienced declines in both sales and profits.

Review of Mid-Term Management Plan 2025 and Earnings Forecast for 2026

The Mid-Term Management Plan 2025 was positioned as a transformational phase aimed at sustainable growth through structural reforms and proactive investments. The sales target of JPY 170 billion for the fiscal year ending December 2025 was achieved, with an operating profit margin of 11.3%, exceeding the target of 7%, and a high ROE of 12.7% was maintained. The earnings forecast for the fiscal year ending December 2026 is net sales of JPY 185.000 billion (up 6.3% YoY), operating income of JPY 21.000 billion (up 6.5%), and net income attributable to owners of parent of JPY 15.000 billion (up 3.8%). Growth initiatives include expanding OPE and general industrial machinery sales in North America, scaling up European operations, and further developing the highly profitable robotics business.