FY2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Business Performance

For the nine-month consolidated cumulative period ending March 2026, net sales were ¥208,055 million (4.5% decline YoY). Operating income was ¥29,226 million (9.1% increase YoY), and ordinary income was ¥30,717 million (9.5% increase YoY), achieving profit growth. However, net income attributable to owners of the parent for the quarter was ¥22,678 million (21.0% decrease YoY) due to the absence of a special gain of about ¥7.6 billion recorded in the same period last year from the transfer of equity interest in Azbil Telstar Co., Ltd. By segment, the Building Automation business saw increases in both order intake and sales, with operating income up 15.4%. The Advanced Automation business performed well, with sales up 1.9% and profits up 7.1%. The Life Automation business experienced significant decreases in order intake and sales due to the Azbil Telstar transfer, resulting in a 63.9% profit decline.

Capital Policy and Financial Position

On May 13, 2025, the board of directors resolved to acquire treasury stock (10,838,700 shares, ¥14,999 million) and cancel (19,300,000 shares, 3.4%), aiming to improve capital efficiency and enhance shareholder returns. At the end of the third quarter of FY2026, the number of treasury shares was 33,630,225, and the treasury stock amount was ¥39,351 million. Net assets decreased compared to the previous fiscal year-end to ¥239,252 million, but the equity ratio improved from 75.3% to 77.8%. Cash and deposits decreased, while investment securities increased.

Outlook

There is no revision to the consolidated earnings forecast for FY2026, with projections of net sales at ¥298 billion (0.8% decrease YoY), operating income at ¥45.5 billion (9.7% increase YoY), ordinary income at ¥45.5 billion (7.9% increase YoY), and net income attributable to owners of the parent at ¥33.5 billion (18.2% decrease YoY). The Building Automation business is expected to grow revenue and profit due to sales recognition of large projects, and the Advanced Automation business also anticipates revenue and profit growth. While the Life Automation business is projected to decline due to the Azbil Telstar transfer, excluding the effects of the transfer, it plans for revenue and profit growth.