Notice Regarding Revision of Full-Year Consolidated Earnings Guidance for the Fiscal Year Ending March 2026

Regarding Revision of Full-Year Consolidated Earnings Guidance

Erex Corporation has revised its full-year consolidated earnings guidance for the fiscal year ending March 2026. Net sales remain unchanged from the previous forecast at 176,181 million yen, while operating income is expected to decrease by 1,501 million yen (17.5%) from 8,601 million yen to 7,100 million yen. Income before income taxes remains unchanged at 7,510 million yen. Net income attributable to owners of parent is forecasted to increase by 585 million yen (17.1%) from 3,415 million yen to 4,000 million yen. Basic earnings per share are projected to rise to 51.28 yen compared to the previous forecast.

Reason for Revision

The primary reason for the revision is the necessity to record a loss of 1,267 million yen due to EneTrade Co., Ltd., a business partner, filing for commencement of civil rehabilitation proceedings. Additionally, there was a timing lag in the settlement of unpurchased inventory related to the purchase contract valuation allowance set in the previous fiscal year, resulting in an operating loss of 868 million yen, which led to the downward revision of the operating income forecast. Conversely, the domestic electricity retail business and power generation & fuel business are expected to outperform plans, and due to the yen's depreciation trend against foreign currencies and anticipated positive financial income, income before income taxes remains unchanged, with net income expected to increase.