Komori
Earnings presentation1964Chugai Ro Co.,Ltd.Construction and Materials

FY2026 Second-Quarter (Interim) Results Summary

In the first half, operating income and ordinary income increased substantially, driven by higher net sales and an improved gross profit margin. However, net income attributable to owners of the parent declined because there were no gains on the sale of cross-shareholdings and a provision for business structure improvement at a Chinese subsidiary was recorded.

Worth reading
63In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
474
Millions of yen (year-on-year increase in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFY2026 second quarter (interim period)12 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥16,055 million+9.0%
Operating profit¥637 million+391.0%
Ordinary income¥751 million+288.0%
Net income285 JPY millions +27.0%net income attributable to owners of the parent
Gross Profit Margin20.5%
Operating profit margin4.0%
Selling, general and administrative expenses¥2,647 million
Full-year earnings forecast
Orders received
¥40,500 million
Net Sales
¥40,300 million
Operating profit
¥3,620 million
Ordinary income
¥3,720 million
Profit attributable to owners of parent
¥2,787 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Full-year results are expected to exceed the initial forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Effect of higher sales¥228 million
  • Improving Profit Margins¥409 million
  • Increase in selling, general and administrative expenses¥-163 million
New initiatives
  • Launch of medium-scale demonstration and development under NEDO's Green Innovation Fund project
  • Development of steel-process furnaces using induction heating, and ammonia- and hydrogen-combustion furnaces
  • Development and implementation of a design and procurement support system
  • Selection for advanced equipment and systems under the Energy-Saving and Non-Fossil Fuel Transition Subsidy
Key KPIsA metric the company considers important as a management benchmark.
  • Order backlog as of the end of September 2026¥40,713 million
  • Reduction in CO2 emissions from delivered equipment versus FY201325 %
  • FY2026 CO2 reduction target20 %
  • Market size target for creating new markets100 Hundreds of millions of yen
  • FY2026 sales target for new markets40 Hundreds of millions of yen
  • FY2026 sales build-up target for existing products112 Hundreds of millions of yen
  • FY2026 operating income build-up target for existing products20.6 Hundreds of millions of yen
  • Standalone operating income per employee target¥5,668 thousand/person
  • Standalone total actual working hours target1,800 hours/person
Segment results
Heat-Treatment Business
Net Sales
¥6,834 million+87.0%
Operating profit
¥-242 million
Plant Business
Net Sales
¥7,804 million+147.0%
Operating profit
¥1,207 million
Development Business
Net Sales
¥473 million+67.0%
Operating profit
¥-330 million
Other
Net Sales
¥2,285 million+74.0%
Operating profit
¥-12 million
Adjustments
Net Sales
¥-1,342 million
Operating profit
¥16 million
Total
Net Sales
¥16,055 million+109.0%
Operating profit
¥637 million+391.0%
Medium-term management plan targets
  • TargetReduce CO2 emissions from delivered equipment by 100% or more versus FY2013 by 2050
    Target fiscal year2050
  • TargetCreate a ¥10 billion market that meets social needs
    Target fiscal year2030
  • TargetFY2026 sales of ¥4 billion from new markets
    Target fiscal yearFiscal 2026
  • Target¥11.2 billion in FY2026 sales build-up and ¥2.06 billion in operating income build-up from existing products
    Target fiscal yearFiscal 2026
  • TargetOperating income per employee of ¥5,668 thousand and total actual working hours of 1,800 hours
    Target fiscal yearFiscal 2026
Financial targets
  • ROE
    Target value10.0%
  • Equity ratio
    Target value50% or higher
    Actual value62.8%
  • Debt dependence ratio
    Target value15% or less at the end of March 2031
    Actual value9.4%
Market Size / Share
Market Size
¥100 100 million 2030 target
Orders received and order backlog
Orders received
¥18,999 million
Order backlog
¥40,713 million
Annual Dividend
Annual dividend per share180 Yen
Payout ratio
The company aims for a payout ratio of at least 60% based on NOPAT. It aims for a total payout ratio of at least 50%.
Acquisition of treasury shares
The company plans to acquire treasury shares as appropriate. The forecast amount of treasury share acquisitions for FY2026 is ¥1,302 million. The number of shares and acquisition period under the acquisition framework are Not disclosed.
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFY2026 second quarter (interim period)
Net Sales¥16,055 million (YoY +9.0%)
Operating profit¥637 million (YoY +391.0%)
Ordinary income¥751 million (YoY +288.0%)
Net income285 JPY millions (net income attributable to owners of the parent) (YoY +27.0%)
Gross Profit Margin20.5%
Operating profit margin4.0%
Selling, general and administrative expenses¥2,647 million
Full-year earnings forecastOrders received ¥40,500 million / Net Sales ¥40,300 million / Operating profit ¥3,620 million / Ordinary income ¥3,720 million / Profit attributable to owners of parent ¥2,787 million
Self-assessment against the planFull-year results are expected to exceed the initial forecast
Segment resultsHeat-Treatment Business Net Sales ¥6,834 million (YoY +87.0%) / Operating profit ¥-242 million / Plant Business Net Sales ¥7,804 million (YoY +147.0%) / Operating profit ¥1,207 million / Development Business Net Sales ¥473 million (YoY +67.0%) / Operating profit ¥-330 million / Other Net Sales ¥2,285 million (YoY +74.0%) / Operating profit ¥-12 million / Adjustments Net Sales ¥-1,342 million / Operating profit ¥16 million / Total Net Sales ¥16,055 million (YoY +109.0%) / Operating profit ¥637 million (YoY +391.0%)
Breakdown of Factors Affecting the ChangeFactors Effect of higher sales / Amount ¥228 million, Factors Improving Profit Margins / Amount ¥409 million, Factors Increase in selling, general and administrative expenses / Amount ¥-163 million
Key KPIsIndicator name Order backlog as of the end of September 2026 / Value ¥40,713 million / Year on year against the same period last year Not disclosed, Indicator name Reduction in CO2 emissions from delivered equipment versus FY2013 / Value 25 % / Year on year against the same period last year Not disclosed, Indicator name FY2026 CO2 reduction target / Value 20 % / Year on year against the same period last year Not disclosed, Indicator name Market size target for creating new markets / Value 100 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name FY2026 sales target for new markets / Value 40 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name FY2026 sales build-up target for existing products / Value 112 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name FY2026 operating income build-up target for existing products / Value 20.6 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name Standalone operating income per employee target / Value ¥5,668 thousand/person / Year on year against the same period last year Not disclosed, Indicator name Standalone total actual working hours target / Value 1,800 hours/person / Year on year against the same period last year Not disclosed
Medium-term management plan targetsTarget Reduce CO2 emissions from delivered equipment by 100% or more versus FY2013 by 2050 / Target fiscal year 2050, Target Create a ¥10 billion market that meets social needs / Target fiscal year 2030, Target FY2026 sales of ¥4 billion from new markets / Target fiscal year Fiscal 2026, Target ¥11.2 billion in FY2026 sales build-up and ¥2.06 billion in operating income build-up from existing products / Target fiscal year Fiscal 2026, Target Operating income per employee of ¥5,668 thousand and total actual working hours of 1,800 hours / Target fiscal year Fiscal 2026
Financial targetsIndicator ROE / Target value 10.0% / Actual value Not disclosed, Indicator Equity ratio / Target value 50% or higher / Actual value 62.8%, Indicator Debt dependence ratio / Target value 15% or less at the end of March 2031 / Actual value 9.4%
Annual DividendAnnual dividend per share 180 Yen / Interim and Year-End Breakdown Not disclosed
Payout ratioThe company aims for a payout ratio of at least 60% based on NOPAT. It aims for a total payout ratio of at least 50%.
Acquisition of treasury sharesThe company plans to acquire treasury shares as appropriate. The forecast amount of treasury share acquisitions for FY2026 is ¥1,302 million. The number of shares and acquisition period under the acquisition framework are Not disclosed.
Orders received and order backlogOrders received ¥18,999 million / Order backlog ¥40,713 million
Market Size / ShareMarket Size ¥100 100 million (2030 target) / Share Not disclosed
New initiativesLaunch of medium-scale demonstration and development under NEDO's Green Innovation Fund project, Development of steel-process furnaces using induction heating, and ammonia- and hydrogen-combustion furnaces, Development and implementation of a design and procurement support system, Selection for advanced equipment and systems under the Energy-Saving and Non-Fossil Fuel Transition Subsidy
Items this document does not state (9)
Results for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookCapital expendituresKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Operating income increased mainly due to a ¥228 million earnings contribution from higher net sales, a ¥409 million earnings contribution from the 2.6-percentage-point improvement in the gross profit margin, and a ¥163 million decline in earnings due to higher SG&A expenses. Net income declined because no cross-shareholdings were sold and a provision for business structure improvement at a Chinese subsidiary was recorded.

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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
FY2026 Second-Quarter (Interim) Results Summary | Chugai Ro Co.,Ltd. (1964) timely disclosure | Komori