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Results3106KURABO INDUSTRIES LTD.Materials and Chemicals

Summary of Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027 (Japanese GAAP) (Consolidated)

In the first half of the fiscal year ending March 2027, revenue and profit increased, driven by higher orders for semiconductors and related products, and operating profit rose 50.4% year on year. The full-year forecast was revised in light of the expected recognition of gains on the sale of investment securities and other factors, resulting in an increase in the forecast for net income attributable to owners of the parent.

Worth reading
58In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
150
¥100 million (expected gain on sale of investment securities)
Wording
Conditional
How definitive the wording is.

Results for this period

Interim period (second quarter)1 April 2026 to 30 September 2026ConsolidatedJapanese GAAP
Net Sales76,451Millions of yenYear on year +10.4%Progress 47.8%
Operating profit5,910Millions of yenYear on year +50.4%Progress 49.3%
Ordinary income7,246Millions of yenYear on year +49.6%Progress 54.5%
Net income attributable to owners of the parent8,571Millions of yenYear on year +33.5%

The width of the band at each stage is based on revenue. The narrower it becomes toward the bottom, the smaller the proportion of revenue that remains as profit. The dotted outline is the full-year forecast and the band inside it is the result for this period. The progress rate is the result divided by the forecast.

Net income per share¥108.25
Financial position at period-end
Total assets216,375Millions of yen
of which net assets 143,304 Millions of yenEquity ratio 65.6%vs. prior year-end +0.1pt

塗りつぶした部分が自己資本比率です。総資産のうち、返済のいらない自前の資金がどれだけかを表します。The thin vertical line indicates the level at the end of the previous fiscal year.

Cash inflows and outflows
Operating+4,340
Investment+4,594
Financials-5,149
Net change+3,785

Stacked from zero: upward is an increase in cash, downward a decrease (in Millions of yen).The net change represented by the dotted line is the total of three items, calculated from figures provided by the company.

Cash and cash equivalents at end of period19,333 Millions of yen
Segment revenue
Chemicals Business37,55849.1%+25.7%
Textile Business20,46126.8%-7.5%
Environmental Mechatronics Business11,13914.6%+10.9%
Food and Services Business5,3237.0%+1.8%
Real Estate Business1,9692.6%-0.1%
Segment profit
Chemicals Business3,650+133.4%
Textile Business-238
Environmental Mechatronics Business1,486-18.8%
Food and Services Business373+0.9%
Real Estate Business1,208-2.9%
Outlook and shareholder returns
Full-year earnings forecast
Net Sales160,000 Millions of yen (YoY +11.3%)
Operating profit12,000 Millions of yen (YoY +30.7%)
Ordinary income13,300 Millions of yen (YoY +20.1%)
Profit attributable to owners of the parent22,500 Millions of yen (YoY +74.7%)
Revision to Earnings ForecastNet Sales 160,000 Millions of yen → 160,000 Millions of yen / Operating profit 12,000 Millions of yen → 12,000 Millions of yen / Ordinary income 13,300 Millions of yen → 13,300 Millions of yen / Profit attributable to owners of the parent 14,800 Millions of yen → 22,500 Millions of yen
Annual Dividend Forecast¥307.00 (previous fiscal year actual) → ¥331 (before the stock split; annual total after the stock split: "-")
Factors Behind Changes in Business Performance

In the Chemical Products business, orders were strong amid the rapid expansion of the semiconductor market driven by the spread of generative AI and other factors, while orders for automotive-related products also remained solid, and the company proceeded with passing on higher raw material costs through its prices. In the Textile business, lower orders from a Brazilian subsidiary and for products supplied to domestic SPAs, as well as the withdrawal from unprofitable businesses, contributed to the decline in revenue. In the Environmental Mechatronics business, lower sales of factory automation equipment and other products, along with a decrease in high-margin products, had an impact. In the Food and Services business, orders, domestic travel demand and inbound demand remained firm. In the Real Estate business, repair and other expenses increased.

Disclosure regarding the going concern assumption

None applicable.

Change in accounting policy
基準改正に伴う変更 Noそれ以外の変更 No見積りの変更 No修正再表示 No
Changes in the scope of consolidationAdditions: 0 companies; removals: 0 companies (no significant changes)
Material subsequent eventsThe disclosure covers the stock split and amendments to the Articles of Incorporation effective 1 October 2026, the acquisition of shares in TAUNS Laboratories,Inc. and the capital and business alliance, and the resolution to sell 12 investment securities issues. The acquisition price for the TAUNS shares was ¥13,340 million, the post-acquisition ownership interest is 20.25%, and a gain on the sale of investment securities of approximately ¥15 billion is expected.
Impairment loss¥323 million (asset subject: Not disclosed)
Breakdown of extraordinary income (loss)Extraordinary income Gain on Sale of Investment Securities 5,822 Millions of yen, Government Grants 18 Millions of yen / Extraordinary loss Impairment loss 323 Millions of yen, Loss on disposal of fixed assets 270 Millions of yen, Special retirement payments 18 Millions of yen, Loss on reduction of fixed asset acquisition costs 18 Millions of yen
Depreciation and amortization2,492 Millions of yen
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingYes (for institutional investors and analysts)
Issued Shares at Period-End85,000,000 shares
Treasury Shares at Period-End6,330,115 treasury shares
Results for this period
ItemDetails
Fiscal Period ClassificationInterim period (second quarter)
Accounting standardsJapanese GAAP
Consolidated / non-consolidatedConsolidated
Period Covered1 April 2026 to 30 September 2026
Net Sales76,451 Millions of yen (YoY +10.4%)
Operating profit5,910 Millions of yen (YoY +50.4%)
Ordinary income7,246 Millions of yen (YoY +49.6%)
Profit attributable to owners of the parent8,571 Millions of yen (YoY +33.5%)
Net income per share¥108.25
Equity ratioEnd of the current fiscal period 65.6 / End of previous period 65.5
Total assets216,375 Millions of yen
Net assets143,304 Millions of yen
Cash flows from operating activities4,340 Millions of yen
Cash flows from investing activities4,594 Millions of yen
Cash flows from financing activities-5,149 Millions of yen
Cash and cash equivalents at end of period19,333 Millions of yen
Full-year earnings forecastNet Sales 160,000 Millions of yen (YoY +11.3%) / Operating profit 12,000 Millions of yen (YoY +30.7%) / Ordinary income 13,300 Millions of yen (YoY +20.1%) / Profit attributable to owners of the parent 22,500 Millions of yen (YoY +74.7%)
Revision to Earnings ForecastNet Sales 160,000 Millions of yen → 160,000 Millions of yen / Operating profit 12,000 Millions of yen → 12,000 Millions of yen / Ordinary income 13,300 Millions of yen → 13,300 Millions of yen / Profit attributable to owners of the parent 14,800 Millions of yen → 22,500 Millions of yen
Annual Dividend Forecast¥307.00 (previous fiscal year actual) → ¥331 (before the stock split; annual total after the stock split: "-")
Segment revenueChemicals Business 37,558 Millions of yen (YoY +25.7%) / Textile Business 20,461 Millions of yen (YoY -7.5%) / Environmental Mechatronics Business 11,139 Millions of yen (YoY +10.9%) / Food and Services Business 5,323 Millions of yen (YoY +1.8%) / Real Estate Business 1,969 Millions of yen (YoY -0.1%)
Segment profitChemicals Business 3,650 Millions of yen (YoY +133.4%) / Textile Business -238 Millions of yen / Environmental Mechatronics Business 1,486 Millions of yen (YoY -18.8%) / Food and Services Business 373 Millions of yen (YoY +0.9%) / Real Estate Business 1,208 Millions of yen (YoY -2.9%)
Depreciation and amortization2,492 Millions of yen
Impairment loss¥323 million (asset subject: Not disclosed)
Breakdown of extraordinary income (loss)Extraordinary income Gain on Sale of Investment Securities 5,822 Millions of yen, Government Grants 18 Millions of yen / Extraordinary loss Impairment loss 323 Millions of yen, Loss on disposal of fixed assets 270 Millions of yen, Special retirement payments 18 Millions of yen, Loss on reduction of fixed asset acquisition costs 18 Millions of yen
Disclosure regarding the going concern assumptionNone applicable.
Change in accounting policyChanges due to revisions to standards No / Other changes No / Change in accounting estimate No / Restatement No
Changes in the scope of consolidationAdditions: 0 companies; removals: 0 companies (no significant changes)
Material subsequent eventsThe disclosure covers the stock split and amendments to the Articles of Incorporation effective 1 October 2026, the acquisition of shares in TAUNS Laboratories,Inc. and the capital and business alliance, and the resolution to sell 12 investment securities issues. The acquisition price for the TAUNS shares was ¥13,340 million, the post-acquisition ownership interest is 20.25%, and a gain on the sale of investment securities of approximately ¥15 billion is expected.
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingYes (for institutional investors and analysts)
Issued Shares at Period-End85,000,000 shares
Treasury Shares at Period-End6,330,115 treasury shares
Factors Behind Changes in Business PerformanceIn the Chemical Products business, orders were strong amid the rapid expansion of the semiconductor market driven by the spread of generative AI and other factors, while orders for automotive-related products also remained solid, and the company proceeded with passing on higher raw material costs through its prices. In the Textile business, lower orders from a Brazilian subsidiary and for products supplied to domestic SPAs, as well as the withdrawal from unprofitable businesses, contributed to the decline in revenue. In the Environmental Mechatronics business, lower sales of factory automation equipment and other products, along with a decrease in high-margin products, had an impact. In the Food and Services business, orders, domestic travel demand and inbound demand remained firm. In the Real Estate business, repair and other expenses increased.
Items this document does not state (5)
Operating MarginPayout ratioShareholder Return PolicyRegional salesOrders received and order backlog

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.

The full-year forecast was changed based on recent business performance and other factors. The sale of investment securities was approved, with a gain on sale of approximately ¥15 billion expected.

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Summary of Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027 (Japanese GAAP) (Consolidated) | KURABO INDUSTRIES LTD. (3106) timely disclosure | Komori