Financial Summary for the Fiscal Year Ending December 2025〔IFRS〕(Consolidated)

Performance Overview

Consolidated net sales for the fiscal year ending December 2025 amounted to 3,188.9 billion yen (an increase of 0.1% year-over-year). Domestic sales increased to 685.2 billion yen (an 8.3% year-over-year increase) driven by higher sales in the Machinery and Water & Environment segments. Meanwhile, overseas sales declined to 2,333.7 billion yen (a 2.1% year-over-year decrease) mainly due to reduced sales in the Machinery segment, resulting in a decrease of the overseas sales ratio to 77.3%. Operating income declined to 265.5 billion yen (down 15.9% year-over-year) affected by US tariffs and unfavorable sales mix; however, certain absorption was achieved through cost reduction efforts. Net income attributable to owners of parent was 186.7 billion yen (a 19.0% year-over-year decrease).

Segment Performance and Future Outlook

The Machinery segment recorded net sales of 2,628.6 billion yen (down 0.3% year-over-year), with domestic sales rising 13.8% but overseas sales declining. The Water & Environment segment saw an increase in sales to 374.4 billion yen (up 3.2% year-over-year), and segment profit grew 35.9% to 33.0 billion yen. For the fiscal year ending December 2026, earnings guidance anticipates net sales of 3,150.0 billion yen (an increase of 4.3% from the previous fiscal year), operating income of 300.0 billion yen (up 13.0%), and net income attributable to owners of parent of 210.0 billion yen (up 12.5%). Exchange rates are assumed at 1 USD = 145 yen and 1 EUR = 165 yen. While tariff impacts and cost increase risks exist, plans are in place to offset these through price revisions and cost reduction measures.