Financial Results for the Second Quarter (Interim Period) of Fiscal Year Ending October 2026 [Japan GAAP] (Consolidated)

Overview of Results

Total revenue for the first half of this fiscal year was JPY 6,204,878 thousand, down 1.6% from the previous year. Operating profit was JPY 107,461 thousand, ordinary profit was JPY 209,016 thousand, both down year over year. Meanwhile, net income attributable to owners of the parent was JPY 205,157 thousand, up 6.7%, indicating improved profitability. By segment, firearms operations faced reduced orders and delayed cost pass-through, leading to lower profit; machine tools posted higher profits; cloud solutions saw continued losses despite revenue growth. Total assets stood at JPY 23,290,903 thousand, and the equity ratio was 49.4%, remaining stable.

Outlook and Capitalization

The full-year forecast remains unchanged. Against the backdrop of solid interim cash generation and prior-year dividend performance, financial soundness is expected to be maintained. There are areas for improvement within segments, particularly price pass-through in the firearms business and demand recovery for bolt-action rifles, which are expected to directly impact profitability. Across the group, strengthening areas with high investment efficiency is a key challenge.