Financial Summary for the Third Quarter of Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Overview of Performance

For the cumulative consolidated period of the third quarter of the fiscal year ending March 2026, net sales amounted to JPY 641.103 billion (up 2.7% YoY). Operating income decreased to JPY 20.497 billion (down 24.4% YoY), but net income attributable to owners of the parent for the quarter secured an increase to JPY 26.772 billion (up 0.9% YoY). The main causes for the decline in profit were the negative effects of LPG market fluctuations, weakening helium market conditions, and a reduction in equity-method investment income.

Segment Performance

The Integrated Energy Business posted net sales of JPY 251.991 billion (down 1.5% YoY) and operating income of JPY 2.957 billion (down 61.5% YoY) due to decreased LPG import prices. The Industrial Gases and Machinery Business recorded net sales of JPY 205.395 billion (up 4.9% YoY) and operating income of JPY 9.368 billion (down 23.4% YoY). Although hydrogen-related products grew, softened helium market conditions and a decrease in automotive-related equipment impacted results. The Materials Business achieved net sales of JPY 159.072 billion (up 6.7% YoY) and operating income of JPY 8.576 billion (down 2.1% YoY), benefiting from increased rare earth sales and new consolidation effects, but challenges remain due to lower profitability in the mineral sand business.

Financial Position and Capital Structure

Total assets were JPY 902.993 billion (an increase of JPY 29.948 billion from the previous fiscal year-end), and net assets were JPY 422.543 billion (an increase of JPY 25.334 billion from the previous fiscal year-end), resulting in an improved equity ratio of 45.5%. Interest-bearing liabilities were JPY 273.489 billion, up JPY 9.041 billion from the previous fiscal year-end. The number of issued shares remained unchanged at 234,246,596 shares, while treasury shares slightly decreased to 4,068,470 shares.

Revision of Earnings Guidance

The consolidated earnings forecast for the fiscal year ending March 2026 has been revised from the forecast announced on May 14, 2025. Net sales are projected at JPY 888.0 billion (up 0.6% YoY), operating income at JPY 35.8 billion (down 22.5% YoY), ordinary income at JPY 48.2 billion (down 21.6% YoY), and net income attributable to owners of the parent at JPY 40.5 billion (up 0.1% YoY). For details, please refer to the 'Notice Regarding Revision of Earnings Forecast' announced on the same day.