Fiscal Year Ending March 2026 Financial Summary [IFRS] (Consolidated)

Summary of Financial Results

For the fiscal year ending March 2026, consolidated results comprised net sales of JPY 5,894.7 billion (YoY +6.8%), operating income of JPY 433.0 billion (YoY +10.5%), profit before tax of JPY 526.0 billion (YoY +20.3%), and net income attributable to owners of parent of JPY 407.7 billion (YoY +25.8%). Operating margin improved to 7.3%, and ROE rose to 9.7% (an increase of 1.3 points year-on-year). Sales growth was driven by the effects of yen depreciation and price improvements, with revenue and profit increases led by the Infrastructure segment’s social systems and defense & space systems businesses, the Life segment’s building systems business, and the Industry & Mobility segment’s factory automation systems business, among others. The number of treasury shares increased, and an annual dividend of JPY 55 per share (up JPY 5 year-on-year) is planned.

Outlook and Financial Position

The earnings forecast for the fiscal year ending March 2027 anticipates net sales of JPY 6,200.0 billion (YoY +5.2%), adjusted operating income of JPY 590.0 billion (YoY +17.7%), profit before tax of JPY 640.0 billion (YoY +21.7%), and net income attributable to owners of parent of JPY 475.0 billion (YoY +16.5%). Total assets are expected to increase to JPY 7,357.5 billion, liabilities will also increase, but equity attributable to owners of parent will rise to JPY 4,484.2 billion. Cash flow from operating activities amounted to an inflow of JPY 575.9 billion, investing activities accounted for an outflow of JPY 344.4 billion, and financing activities an outflow of JPY 304.8 billion, resulting in free cash flow inflow of JPY 231.5 billion.