Notice Regarding the Difference Between the Forecasted and Actual Full-Year Earnings for the Fiscal Year Ending December 2025

Overview of Earnings

THK Co., Ltd. announced a significant variance between its consolidated earnings forecast and actual results for the fiscal year ending December 2025. Consolidated revenue was ¥240,444 million, down 33.2% from the previous forecast of ¥360,000 million, and operating income decreased by 9.8% to ¥14,436 million. Net income attributable to owners of the parent posted a substantial loss of ¥-69,891 million due to the recognition of a business restructuring loss related to the transportation equipment segment amounting to ¥81,639 million. Meanwhile, non-consolidated results exceeded previous forecasts with revenue of ¥145,070 million and operating income of ¥4,235 million, but net income was negative at ¥-24,701 million due to impairment losses and other factors related to discontinued operations.

Reasons for the Variance and Future Outlook

The variance in consolidated earnings resulted from classifying the transportation equipment business as a discontinued operation and recording a business restructuring loss. The increase in non-consolidated revenue was supported by a weaker yen and increased dividend income from consolidated subsidiaries; however, impairment losses on equity method investments related to discontinued operations and the provision for business restructuring reserves significantly depressed net income. Going forward, THK intends to proceed with the disposal of discontinued businesses while focusing on improving earnings from continuing operations.