Q1 Financial Summary for the Fiscal Year Ending November 2026 [Japanese GAAP] (Consolidated)

Summary of Business Results

In the first quarter of the fiscal year ending November 2026, net sales amounted to JPY 60.27 billion (6.2% increase YoY). Declines in domestic automotive demand were offset by recoveries in demand from construction machinery sectors in Europe, the US and China, as well as the commercial sector in ASEAN. Operating income rose to JPY 2.725 billion (26.9% increase YoY), supported by the effects of structural reforms, passing on raw material cost increases to selling prices, and automation and streamlining of production lines. Ordinary income reached JPY 2.137 billion (45.8% increase YoY), but due to booking JPY 164 million in structural reform expenses as extraordinary losses, net income attributable to owners of parent came to JPY 1.121 billion (21.7% decrease YoY).

Segment Results and Financial Condition

The Machine Tools segment posted net sales of JPY 18.597 billion (3.0% increase YoY), but operating income declined to JPY 764 million (6.8% decrease YoY). The Components segment delivered robust results with net sales of JPY 37.470 billion (6.8% increase YoY) and operating income of JPY 1.565 billion (32.6% increase YoY). Other segments recorded net sales of JPY 4.139 billion (16.4% increase YoY) and operating income of JPY 346 million (142.1% increase YoY). Total assets stood at JPY 339.58 billion (increase of JPY 8.285 billion from previous fiscal year-end), net assets at JPY 179.09 billion (increase of JPY 4.759 billion), and equity ratio at 51.6% (up 0.1 points).