Worth reading
49Recurring
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
-50
¥ hundred millionWording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Earnings presentationFiscal year ending March 2026, full year13 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,546 hundred million-3.1%
Operating profit¥48 hundred million-27.3%
Ordinary income¥40 hundred million-18.4%
Net income¥31 hundred million+29.2%
Full-year earnings forecast
Net Sales
¥1,660 hundred million
Operating profit
¥64 hundred million
Ordinary income
¥51 hundred million
Net income
¥31 hundred million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue was below the previous forecast, while operating profit, ordinary profit and net income were above the previous forecast. By segment, the domestic steel products business deteriorated, the spring business outperformed, and the forgings and castings and equipment and machinery businesses were broadly in line with forecasts.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Lower sales volumes and lower productivity due to blast furnace disruptions and a fireApproximately ¥3.5 billion deterioration in operating profit
- Blast furnace-related recovery costs¥900 million in extraordinary losses
- Elimination of extraordinary losses associated with the withdrawal from the German spring subsidiary in the previous fiscal year
- Gain on sale of non-current assets¥600 million increase
- Tax Effects
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Exchange rate¥155 assumed at end-March 2027
New initiatives
- Add a new line to expand capacity for special alloy powders
- Improve production costs, mainly at the North American subsidiary
- Initiatives to ensure stable operations and normalize orders after the blast furnace resumes operations
Key KPIsA metric the company considers important as a management benchmark.
- Domestic steel product sales volume (own sales, cumulative)267 thousand tonnesYear on year against the same period last yearDown from 342 thousand tonnes
- Expected orders for the equipment and machinery business¥12.9 billion
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The presentation provides information on domestic steel product sales volumes, sales volumes by business, selling prices and cost improvements, but the combined price-and-volume metric is Not disclosedSegment results
- Specialty steel materialsNet Sales¥649 hundred millionYear-on-year change in revenue-20.4Operating profit¥-10 hundred millionYear-on-Year Change in Operating Profit-43
- SpringsNet Sales¥762 hundred millionYear-on-year change in revenue15.3Operating profit¥40 hundred millionYear-on-Year Change in Operating Profit20
- Advanced MaterialsNet Sales¥98 hundred millionYear-on-year change in revenue6.5Operating profit¥8 hundred millionYear-on-Year Change in Operating Profit4
- EquipmentNet Sales¥118 hundred millionYear-on-year change in revenue12.4Operating profit¥9 hundred millionYear-on-Year Change in Operating Profit2
- OtherNet Sales¥37 hundred millionOperating profit¥1 hundred million
Financial targets
- Equity ratioActual results for the fiscal year ending March 202634.4%Forecast for the fiscal year ending March 202734.0%
- ROEActual results for the fiscal year ending March 20266.7%Forecast for the fiscal year ending March 20276.3%
- Net debt-to-equity ratioActual results for the fiscal year ending March 20260.5xForecast for the fiscal year ending March 20270.6x
- DOEActual results for the fiscal year ending March 20262.8%Forecast for the fiscal year ending March 20273.5%
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
The impact of the situation in the Middle East on demand and procurement has not been incorporated. Amount Not disclosedOrders received and order backlog
Expected orders for the equipment and machinery business of ¥12.9 billion. Order backlog Not disclosedCapital expenditures
¥64 hundred million
Annual Dividend
Actual results for the fiscal year ending March 2026¥81.0 per share
Forecast for the fiscal year ending March 2027¥104.0 per share
Payout ratio
Fiscal year ending March 202640.1%
Forecast for the fiscal year ending March 202750.7%
DOE
Fiscal year ending March 20262.8%
Forecast for the fiscal year ending March 20273.5%
| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Fiscal year ending March 2026, full year |
| Net Sales | ¥1,546 hundred million (YoY -3.1%) |
| Operating profit | ¥48 hundred million (YoY -27.3%) |
| Ordinary income | ¥40 hundred million (YoY -18.4%) |
| Net income | ¥31 hundred million (YoY +29.2%) |
| Full-year earnings forecast | Net Sales ¥1,660 hundred million / Operating profit ¥64 hundred million / Ordinary income ¥51 hundred million / Net income ¥31 hundred million |
| Self-assessment against the plan | Revenue was below the previous forecast, while operating profit, ordinary profit and net income were above the previous forecast. By segment, the domestic steel products business deteriorated, the spring business outperformed, and the forgings and castings and equipment and machinery businesses were broadly in line with forecasts. |
| Segment results | Segment Specialty steel materials / Net Sales ¥649 hundred million / Year-on-year change in revenue -20.4 / Operating profit ¥-10 hundred million / Year-on-Year Change in Operating Profit -43, Segment Springs / Net Sales ¥762 hundred million / Year-on-year change in revenue 15.3 / Operating profit ¥40 hundred million / Year-on-Year Change in Operating Profit 20, Segment Advanced Materials / Net Sales ¥98 hundred million / Year-on-year change in revenue 6.5 / Operating profit ¥8 hundred million / Year-on-Year Change in Operating Profit 4, Segment Equipment / Net Sales ¥118 hundred million / Year-on-year change in revenue 12.4 / Operating profit ¥9 hundred million / Year-on-Year Change in Operating Profit 2, Segment Other / Net Sales ¥37 hundred million / Operating profit ¥1 hundred million |
| Breakdown of Factors Affecting the Change | Factors Lower sales volumes and lower productivity due to blast furnace disruptions and a fire / Amount Approximately ¥3.5 billion deterioration in operating profit, Factors Blast furnace-related recovery costs / Amount ¥900 million in extraordinary losses, Factors Elimination of extraordinary losses associated with the withdrawal from the German spring subsidiary in the previous fiscal year / Amount Not disclosed, Factors Gain on sale of non-current assets / Amount ¥600 million increase, Factors Tax Effects / Amount Not disclosed |
| Key KPIs | Indicator name Domestic steel product sales volume (own sales, cumulative) / Value 267 thousand tonnes / Year on year against the same period last year Down from 342 thousand tonnes, Indicator name Expected orders for the equipment and machinery business / Value ¥12.9 billion / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | The presentation provides information on domestic steel product sales volumes, sales volumes by business, selling prices and cost improvements, but the combined price-and-volume metric is Not disclosed |
| Assumptions Underlying the Business Outlook | Item Exchange rate / Value ¥155 assumed at end-March 2027 |
| Risk amount incorporated into the outlook | The impact of the situation in the Middle East on demand and procurement has not been incorporated. Amount Not disclosed |
| Financial targets | Indicator Equity ratio / Actual results for the fiscal year ending March 2026 34.4% / Forecast for the fiscal year ending March 2027 34.0%, Indicator ROE / Actual results for the fiscal year ending March 2026 6.7% / Forecast for the fiscal year ending March 2027 6.3%, Indicator Net debt-to-equity ratio / Actual results for the fiscal year ending March 2026 0.5x / Forecast for the fiscal year ending March 2027 0.6x, Indicator DOE / Actual results for the fiscal year ending March 2026 2.8% / Forecast for the fiscal year ending March 2027 3.5% |
| Annual Dividend | Actual results for the fiscal year ending March 2026 ¥81.0 per share / Forecast for the fiscal year ending March 2027 ¥104.0 per share / Interim and Year-End Breakdown Not disclosed |
| Payout ratio | Fiscal year ending March 2026 40.1% / Forecast for the fiscal year ending March 2027 50.7% / DOE Fiscal year ending March 2026 2.8% / Forecast for the fiscal year ending March 2027 3.5% |
| Capital expenditures | ¥64 hundred million |
| Orders received and order backlog | Expected orders for the equipment and machinery business of ¥12.9 billion. Order backlog Not disclosed |
| New initiatives | Add a new line to expand capacity for special alloy powders, Improve production costs, mainly at the North American subsidiary, Initiatives to ensure stable operations and normalize orders after the blast furnace resumes operations |
Items this document does not state (11)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastNumber of stores and locationsNumber of employeesMedium-term management plan targetsAcquisition of treasury sharesMarket Size / ShareKey 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.The company cited lower demand for domestic steel products, lower sales volumes caused by blast furnace disruptions and a fire, and lower productivity as reasons for the declines in revenue and operating profit. The increase in net income was attributed to the elimination of extraordinary losses associated with the withdrawal from the German spring subsidiary in the previous fiscal year, gains on the sale of fixed assets, and tax effects.
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