Komori
Results6203Howa Machinery,Ltd.Machinery

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

For the interim period of the fiscal year ending March 2027, net sales decreased 11.1% year on year, while operating profit increased 153.8% and interim net profit attributable to owners of the parent increased 611.3%. The full-year earnings forecast and annual dividend forecast remain unchanged.

Worth reading
48Recurring
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
589
¥ million (year-on-year increase in operating profit)
Wording
Conditional
How definitive the wording is.

Results for this period

Interim period (second quarter)1 April 2026 to 30 September 2026ConsolidatedJapanese GAAP
Net Sales10,460Millions of yenYear on year -11.1%Progress 44.4%
Operating profit972Millions of yenYear on year +153.8%Progress 68.9%
Ordinary income1,117Millions of yenYear on year +151.0%Progress 70.7%
Net income attributable to owners of the parent754Millions of yenYear on year +611.3%Progress 69.8%

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¥62.56
Financial position at period-end
Total assets37,923Millions of yen
of which net assets 23,644 Millions of yenEquity ratio 62.3%vs. prior year-end +3.6pt

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.

Segment revenueMachine Tools 2,464 Millions of yen, Firearms 4,074 Millions of yen, Special-purpose vehicles 566 Millions of yen, Building Materials 1,674 Millions of yen, Real Estate Leasing 257 Millions of yen, Domestic sales subsidiaries 1,065 Millions of yen, Domestic transportation subsidiary 305 Millions of yen
Segment profitMachine Tools 279 Millions of yen, Firearms 420 Millions of yen, Special-purpose vehicles -117 Millions of yen, Building Materials 101 Millions of yen, Real Estate Leasing 208 Millions of yen, Domestic sales subsidiaries 58 Millions of yen, Domestic transportation subsidiary -4 Millions of yen
Outlook and shareholder returns
Full-year earnings forecast
Net Sales23,560 Millions of yen (YoY -2.1%)
Operating profit1,410 Millions of yen (YoY +18.9%)
Ordinary income1,580 Millions of yen (YoY +14.3%)
Net income1,080 Millions of yen (YoY +45.7%)
Annual Dividend Forecast20 Yen → 20 Yen(0.0%)
Factors Behind Changes in Business Performance

The Company advanced structural reforms in low-growth and unprofitable businesses, improved productivity, reduced costs and strengthened sales capabilities. In the machine tools business, an increased proportion of high-margin projects, improved profitability of pneumatic and hydraulic equipment, and orders for products for which inventory valuation losses had been recorded in prior fiscal years contributed to the increase in profit. In firearms, revenue from a specific initiative contract in the same period of the previous year fell away, while in special-purpose vehicles, the transition period associated with a model change, difficulties in procuring raw materials due to the situation in the Middle East, and a decline in orders had an impact. In building materials, profitability improved as a result of higher sales and improved productivity.

Disclosure regarding the going concern assumption

None

Change in accounting policy
基準改正に伴う変更 Noneそれ以外の変更 None見積りの変更 None修正再表示 None
Changes in the scope of consolidationNew — companies / Excluded — companies / Company name Not applicable
Impairment loss10 Millions of yen
Breakdown of extraordinary income (loss)Extraordinary income Gain on sale of non-current assets 1 Millions of yen, Gain on negative goodwill 1 Millions of yen, Other 0 Millions of yen / Extraordinary loss Impairment Losses 10 Millions of yen, Loss on disposal and sale of non-current assets 0 Millions of yen, Other 0 Millions of yen
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingWhether applicable Yes / Subject person Institutional investors and analysts
Issued Shares at Period-End12,548,134
Treasury Shares at Period-End529,508
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 Sales10,460 Millions of yen (YoY -11.1%)
Operating profit972 Millions of yen (YoY +153.8%)
Ordinary income1,117 Millions of yen (YoY +151.0%)
Profit attributable to owners of the parent754 Millions of yen (YoY +611.3%)
Net income per share¥62.56
Equity ratioEnd of the current fiscal period 62.3 / End of previous period 58.7
Total assets37,923 Millions of yen
Net assets23,644 Millions of yen
Full-year earnings forecastNet Sales 23,560 Millions of yen (YoY -2.1%) / Operating profit 1,410 Millions of yen (YoY +18.9%) / Ordinary income 1,580 Millions of yen (YoY +14.3%) / Net income 1,080 Millions of yen (YoY +45.7%)
Annual Dividend Forecast20 Yen → 20 Yen(0.0%)
Segment revenueMachine Tools 2,464 Millions of yen, Firearms 4,074 Millions of yen, Special-purpose vehicles 566 Millions of yen, Building Materials 1,674 Millions of yen, Real Estate Leasing 257 Millions of yen, Domestic sales subsidiaries 1,065 Millions of yen, Domestic transportation subsidiary 305 Millions of yen
Segment profitMachine Tools 279 Millions of yen, Firearms 420 Millions of yen, Special-purpose vehicles -117 Millions of yen, Building Materials 101 Millions of yen, Real Estate Leasing 208 Millions of yen, Domestic sales subsidiaries 58 Millions of yen, Domestic transportation subsidiary -4 Millions of yen
Impairment loss10 Millions of yen
Breakdown of extraordinary income (loss)Extraordinary income Gain on sale of non-current assets 1 Millions of yen, Gain on negative goodwill 1 Millions of yen, Other 0 Millions of yen / Extraordinary loss Impairment Losses 10 Millions of yen, Loss on disposal and sale of non-current assets 0 Millions of yen, Other 0 Millions of yen
Disclosure regarding the going concern assumptionNone
Change in accounting policyChanges due to revisions to standards None / Other changes None / Change in accounting estimate None / Restatement None
Changes in the scope of consolidationNew — companies / Excluded — companies / Company name Not applicable
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingWhether applicable Yes / Subject person Institutional investors and analysts
Issued Shares at Period-End12,548,134
Treasury Shares at Period-End529,508
Factors Behind Changes in Business PerformanceThe Company advanced structural reforms in low-growth and unprofitable businesses, improved productivity, reduced costs and strengthened sales capabilities. In the machine tools business, an increased proportion of high-margin projects, improved profitability of pneumatic and hydraulic equipment, and orders for products for which inventory valuation losses had been recorded in prior fiscal years contributed to the increase in profit. In firearms, revenue from a specific initiative contract in the same period of the previous year fell away, while in special-purpose vehicles, the transition period associated with a model change, difficulties in procuring raw materials due to the situation in the Middle East, and a decline in orders had an impact. In building materials, profitability improved as a result of higher sales and improved productivity.
Items this document does not state (12)
Operating MarginCash flows from operating activitiesCash flows from investing activitiesCash flows from financing activitiesCash and cash equivalents at end of periodRevision to Earnings ForecastPayout ratioShareholder Return PolicyRegional salesOrders received and order backlogDepreciation and amortizationMaterial subsequent events

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.

In addition to advancing structural reforms in low-growth and unprofitable businesses, improving productivity, reducing costs and strengthening sales capabilities, the increase in profit was supported in the machine tools business by a higher proportion of high-margin projects, improved profitability of pneumatic and hydraulic equipment, and orders for products for which inventory valuation losses had been recorded in prior fiscal years.

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