Fiscal Year Ending March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Results

For the cumulative third quarter period of the fiscal year ending March 2026, net sales were ¥160,207.2 million (0.3% decrease YoY). Operating income was ¥10,863 million (9.1% increase YoY), ordinary income was ¥11,579 million (13.3% increase YoY), and net income attributable to owners of parent was ¥8,323 million (14.7% increase YoY). Although sales decline in the aircraft-related segment impacted net sales, profit increased due to improved gross margin and absorption of increased selling, general and administrative expenses.

Segment Performance

The Plant & Energy segment recorded net sales of ¥16,457 million (6.9% increase YoY) and segment profit of ¥1,394 million (16.6% increase YoY). The Energy Solutions segment saw net sales decrease by ¥3,442 million (16.2% decrease YoY) but segment profit increased by ¥2,540 million (1.5% increase YoY). The Industrial Machinery segment’s net sales fell by ¥1,971.6 million (5.5% decrease YoY) and segment profit decreased by ¥411 million (41.6% decrease YoY). Electronics segment net sales dropped by ¥3,573.1 million (6.6% decrease YoY) but segment profit rose by ¥2,115 million (2.6% increase YoY). Auto segment net sales grew by ¥3,063.5 million (4.5% increase YoY) with segment profit up ¥2,127 million (59.6% increase YoY). Healthcare segment net sales increased by ¥1,560.6 million (43.6% increase YoY) and segment profit grew by ¥1,590 million (57.0% increase YoY). The Aviation & Infrastructure segment achieved net sales growth of ¥767.1 million (55.3% increase YoY) and segment profit rose by ¥751 million (84.0% increase YoY).

Overview of Financial Position

At the end of the third quarter consolidated accounting period, total assets amounted to ¥172,977 million, an increase of ¥1,640 million from the end of the previous fiscal year. Total liabilities decreased by ¥8,527 million to ¥85,276 million. Total net assets increased by ¥8,771 million, reaching ¥87,710 million. This was due to dividend payments and recording of quarterly net income.

Dividend Status

The annual dividend forecast for the fiscal year ending March 2026 is ¥122 (interim ¥51, year-end ¥71), representing an increase from ¥92 in the previous year. There is no revision to the most recent dividend forecast.

Earnings Forecast

The full-year consolidated earnings forecast for the fiscal year ending March 2026 anticipates net sales of ¥225,000 million (1.5% increase YoY), operating income of ¥13,200 million (0.7% increase YoY), ordinary income of ¥13,500 million (0.7% decrease YoY), and net income attributable to owners of parent of ¥9,600 million (8.6% increase YoY). There is no revision from the latest earnings forecast.