Komori
Revision of earnings forecasts6203Howa Machinery,Ltd.Machinery

Notice Regarding the Recording of an Extraordinary Loss and the Difference Between the Forecast and Actual Results

Full-year consolidated results for the fiscal year ending March 2026 exceeded the previous forecasts for sales, operating profit, ordinary profit and net income. At the same time, the Company recognized a ¥112 million loss on business restructuring as an extraordinary loss in connection with the dissolution and liquidation of its Chinese subsidiary.

Worth reading
68In 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
208.8
% (change in net income attributable to owners of the parent)
Wording
Definitive
How definitive the wording is.

Revised forecast

Fiscal year ending March 2026 · Full yearPrevious forecast published 14 November 2025
Net Sales23,200→24,064million
+3.7%
Operating profit670→1,186million
+77.0%
Ordinary income800→1,382million
+72.8%
Profit attributable to owners of the parent240→741million
+208.8%
Net income per share19.89→61.41yen
+208.7%

The bar length represents the relative magnitude of change, based on the item that changed the most in this document. The percentage change shown by the dotted line is calculated from the two reported figures because the company did not provide the rate.

Reason for the revision

Sales of machine tools in the machine tools-related business, equipment and replacement parts supplied to the Ministry of Defense in the firearms business, and soundproof sashes in the building materials business exceeded the previous forecasts. Operating profit increased due to higher sales in the firearms business, higher sales and improved profitability in the building materials business, while ordinary profit increased due to higher dividend income. Although the Company recognized a loss on business restructuring, net income increased due to higher ordinary profit and gains on the sale of investment securities.

Details and amount of extraordinary loss

Loss on business restructuring: ¥112 million. This comprised economic compensation payments to employees leaving in connection with the dissolution and liquidation of the consolidated subsidiary in China, costs associated with withdrawing from its business premises, and inventory disposal costs, among others.

Previous-period resultsNet Sales 24,827 Sales and profit: ¥ million; net income per share: yen and sen / Operating profit 1,253 Sales and profit: ¥ million; net income per share: yen and sen / Ordinary income 1,413 Sales and profit: ¥ million; net income per share: yen and sen / Profit attributable to owners of the parent 749 Sales and profit: ¥ million; net income per share: yen and sen / Net income per share 62.18 Sales and profit: ¥ million; net income per share: yen and sen
Consolidated / non-consolidatedConsolidated
Revised forecast
ItemDetails
Net Sales¥23,200 million → ¥24,064 million(+3.7%)
Operating profit¥670 million → ¥1,186 million(+77.0%)
Ordinary income¥800 million → ¥1,382 million(+72.8%)
Profit attributable to owners of the parent¥240 million → ¥741 million(+208.8%)
Net income per share19.89 yen → 61.41 yen
Fiscal Period CoveredFiscal year ending March 2026
Period CoveredFull year
Publication date of previous forecast14 November 2025
Previous-period resultsNet Sales 24,827 Sales and profit: ¥ million; net income per share: yen and sen / Operating profit 1,253 Sales and profit: ¥ million; net income per share: yen and sen / Ordinary income 1,413 Sales and profit: ¥ million; net income per share: yen and sen / Profit attributable to owners of the parent 749 Sales and profit: ¥ million; net income per share: yen and sen / Net income per share 62.18 Sales and profit: ¥ million; net income per share: yen and sen
Reason for the revisionSales of machine tools in the machine tools-related business, equipment and replacement parts supplied to the Ministry of Defense in the firearms business, and soundproof sashes in the building materials business exceeded the previous forecasts. Operating profit increased due to higher sales in the firearms business, higher sales and improved profitability in the building materials business, while ordinary profit increased due to higher dividend income. Although the Company recognized a loss on business restructuring, net income increased due to higher ordinary profit and gains on the sale of investment securities.
Details and amount of extraordinary lossLoss on business restructuring: ¥112 million. This comprised economic compensation payments to employees leaving in connection with the dissolution and liquidation of the consolidated subsidiary in China, costs associated with withdrawing from its business premises, and inventory disposal costs, among others.
Consolidated / non-consolidatedConsolidated
Items this document does not state (1)
Dividend forecast revision

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.

Results exceeded the previous forecasts due to higher sales of machine tools, equipment supplied to the Ministry of Defense and soundproof sashes, increased profit resulting from higher sales in the firearms business, improved profitability in the building materials business, higher dividend income and gains on the sale of investment securities. Although the Company recognized ¥112 million in extraordinary losses, including costs related to the liquidation of its Chinese subsidiary, net income also increased due to higher ordinary profit and gains on the sale of investment securities.

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Notice Regarding the Recording of an Extraordinary Loss and the Difference Between the Forecast and Actual Results | Howa Machinery,Ltd. (6203) timely disclosure | Komori