2026 Fiscal Year 2Q (Interim) Financial Summary [Japanese GAAP]

Business Performance Overview

In this fiscal year's second quarter, sales declined slightly year over year, but profitability improved notably. Profitability gains in the sewing and contract manufacturing segments and reduced losses in the industrial machinery segment led to a turn to operating profit and a positive ordinary income. Interim net income attributable to owners of the parent reached 494 million yen, surpassing the previous year, with continued effects from structural reforms. The full-year guidance remains: net sales 90,000 million yen, operating profit 4,500 million yen, ordinary income 2,000 million yen, and net income attributable to owners of the parent 1,500 million yen.

Outlook and Segment Trends

The sewing segment will continue to focus on high-value-added markets to improve margins. In the industrial machinery segment, orders from the Chinese market are contributing to expected revenue growth. The contract manufacturing business is seeing continued orders related to AI and data centers, with improved profitability as the global niche strategy takes hold. Despite ongoing geopolitical uncertainty in the Middle East posing risks, there is no current need to revise the full-year guidance.