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Results presentation6524KOHOKU KOGYO CO.,LTD.Electric Appliances & Precision Instruments

Financial Results Briefing Materials for the Third Quarter of the Fiscal Year Ending December 2026

For the cumulative third quarter of the fiscal year ending December 2026, both revenue and operating income significantly exceeded the year-earlier period, with both businesses reporting higher revenue and profit. The full-year forecast was unchanged. The lead terminal business is slightly ahead of plan, while the optical components and devices business is progressing approximately in line with plan.

Worth reading
71In focus
Scored from 5 of 6 sections
Direction
Improvement
Direction inferred from the company’s description.
Scale
3694
¥ million (year-on-year increase in revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Results presentationCumulative third quarter, fiscal year ending December 202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥16,174 million+29.6%
Operating profit¥5,145 million+60.9%
Ordinary income¥5,111 million+80.8%
Net income¥3,525 million +100.9%net income attributable to owners of the parent
Selling, general and administrative expenses¥2,377 million
Gross Profit MarginApproximately 46.5%. The year-on-year change in percentage points is not specified in the materials.
Operating profit margin31.8%, up 6.2 percentage points year on year
Results for the three months of the current quarter
Net Sales
¥6,151 million
Operating profit
¥2,196 million
Ordinary income
¥1,959 million
Net income
¥1,402 million profit attributable to owners of the parent
Operating profit margin35.7%
Full-year earnings forecast
Net Sales
¥22,238 million
Operating profit
¥6,754 million
Operating profit margin30.4%
Ordinary income
¥6,888 million
Net income
¥4,618 million net income attributable to owners of the parent
Earnings per share
178.29 Yen
Lead Terminals business net sales
¥11,349 million
Lead Terminals business operating income
¥1,178 million
Optical Components and Devices business net sales
¥10,888 million
Optical Components and Devices business operating income
¥5,575 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。The numerical progress rate is not specified. The materials state that the consolidated results are “approximately in line with plan,” the lead terminal business is “slightly ahead,” and the optical components and devices business is “approximately in line.”
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The consolidated results are approximately in line with plan. The lead terminal business is slightly ahead of the outlook as of August, while the optical components and devices business is approximately in line.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Foreign exchange impact+¥968 million (consolidated operating income, year on year)
  • Underlying increase+¥2,725 million (consolidated operating income, year on year)
  • Higher materials costs-¥1,128 million (consolidated operating income, year on year)
  • Higher labor costs-¥316 million (consolidated operating income, year on year)
  • Increase in expenses-¥366 million (consolidated operating income, year on year)
  • Increase in personnel expenses-¥121 million (consolidated operating income, year on year)
  • Increase in R&D expenses-¥41 million (consolidated operating income, year on year)
  • Outperformance versus plan due to fixed-cost reductions and other factors+¥222 million versus plan (from ¥4,923 million to ¥5,145 million)
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Exchange rate (second-half outlook)160 JPY/USD
  • Foreign exchange sensitivity (assuming a ¥1 movement persists for one year)Revenue: ¥80 million; operating profit: ¥30 million
  • Expected growth rate of the small aluminum electrolytic capacitor market4 % CAGR
New initiatives
  • Part of the capacity expansion for optical components and devices for submarine cables brought forward
  • Relocation of front-end equipment in the United States to the head office plant
  • Sales of FIFO devices supporting multicore fiber for terrestrial applications are scheduled to begin in December 2026
  • Targeting full-scale mass production of laser-welded products from April 2027
  • Launch of sales of PLZT single-crystal wafers and development and expansion of sales of optoelectronic integration-related products
  • Transition to the TSE Prime Market on 26 October 2026
Key KPIsA metric the company considers important as a management benchmark.
  • OEE (consolidated)85.7 %
  • Sales ratio of high-value-added products28 % third quarter of the fiscal year ending December 2026
  • Sales ratio for the automotive market55 % forecast for the fiscal year ending December 2026
  • Sales ratio for AI servers10 Approximately % estimate as of September 2026
  • Small isolator sales ratio80 % level
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Sales volume trends are shown, but the decomposition metric combining volume and unit price is not disclosed
Segment results
  • Lead terminal business
    Net Sales¥8,442 million
    Revenue_yoy_pct32.8
    Operating profit¥1,021 million
    Operating profit_yoy_pct83.8
  • Optical components and devices business
    Net Sales¥7,731 million
    Revenue_yoy_pct26.3
    Operating profit¥4,124 million
    Operating profit_yoy_pct56.1
Market Size / Share
The company states that it maintains a 95% global market share in drivetrains for the automotive market. It also provides forecasts for the small aluminum electrolytic capacitor market size, the share for AI servers, and the distance and number of fiber pairs for submarine cable projects
Orders received and order backlog
Orders are described as strong, but the amount is not disclosed
Number of employees
Employee count is not disclosed. The company states that it will further increase staffing at its Sri Lankan plant
Capital expenditures
¥1,128 millions cumulative through Q3 of the fiscal year ending December 2026, as shown in the graph
Contents of this document
ItemDetails
Document typeResults presentation
Fiscal Period CoveredCumulative third quarter, fiscal year ending December 2026
Net Sales¥16,174 million (YoY +29.6%)
Operating profit¥5,145 million (YoY +60.9%)
Ordinary income¥5,111 million (YoY +80.8%)
Net income¥3,525 million (net income attributable to owners of the parent) (YoY +100.9%)
Gross Profit MarginApproximately 46.5%. The year-on-year change in percentage points is not specified in the materials.
Operating profit margin31.8%, up 6.2 percentage points year on year
Selling, general and administrative expenses¥2,377 million
Results for the three months of the current quarterNet Sales ¥6,151 million / Operating profit ¥2,196 million / Ordinary income ¥1,959 million / Net income ¥1,402 million (profit attributable to owners of the parent) / Operating profit margin 35.7%
Full-year earnings forecastNet Sales ¥22,238 million / Operating profit ¥6,754 million / Operating profit margin 30.4% / Ordinary income ¥6,888 million / Net income ¥4,618 million (net income attributable to owners of the parent) / Earnings per share 178.29 Yen / Lead Terminals business net sales ¥11,349 million / Lead Terminals business operating income ¥1,178 million / Optical Components and Devices business net sales ¥10,888 million / Optical Components and Devices business operating income ¥5,575 million
Progress against full-year forecastThe numerical progress rate is not specified. The materials state that the consolidated results are “approximately in line with plan,” the lead terminal business is “slightly ahead,” and the optical components and devices business is “approximately in line.”
Self-assessment against the planThe consolidated results are approximately in line with plan. The lead terminal business is slightly ahead of the outlook as of August, while the optical components and devices business is approximately in line.
Segment resultsSegment Lead terminal business / Net Sales ¥8,442 million / Revenue_yoy_pct 32.8 / Operating profit ¥1,021 million / Operating profit_yoy_pct 83.8, Segment Optical components and devices business / Net Sales ¥7,731 million / Revenue_yoy_pct 26.3 / Operating profit ¥4,124 million / Operating profit_yoy_pct 56.1
Breakdown of Factors Affecting the ChangeItem Foreign exchange impact / Amount +¥968 million (consolidated operating income, year on year), Item Underlying increase / Amount +¥2,725 million (consolidated operating income, year on year), Item Higher materials costs / Amount -¥1,128 million (consolidated operating income, year on year), Item Higher labor costs / Amount -¥316 million (consolidated operating income, year on year), Item Increase in expenses / Amount -¥366 million (consolidated operating income, year on year), Item Increase in personnel expenses / Amount -¥121 million (consolidated operating income, year on year), Item Increase in R&D expenses / Amount -¥41 million (consolidated operating income, year on year), Item Outperformance versus plan due to fixed-cost reductions and other factors / Amount +¥222 million versus plan (from ¥4,923 million to ¥5,145 million)
Key KPIsIndicator name OEE (consolidated) / Value 85.7 % / Year on year against the same period last year Not disclosed, Indicator name Sales ratio of high-value-added products / Value 28 % (third quarter of the fiscal year ending December 2026) / Year on year against the same period last year Not disclosed, Indicator name Sales ratio for the automotive market / Value 55 % (forecast for the fiscal year ending December 2026) / Year on year against the same period last year Not disclosed, Indicator name Sales ratio for AI servers / Value 10 Approximately % (estimate as of September 2026) / Year on year against the same period last year Not disclosed, Indicator name Small isolator sales ratio / Value 80 % level / Year on year against the same period last year Not disclosed
Unit price and quantity metricsSales volume trends are shown, but the decomposition metric combining volume and unit price is not disclosed
Number of employeesEmployee count is not disclosed. The company states that it will further increase staffing at its Sri Lankan plant
Assumptions Underlying the Business OutlookItem Exchange rate (second-half outlook) / Value 160 JPY/USD, Item Foreign exchange sensitivity (assuming a ¥1 movement persists for one year) / Value Revenue: ¥80 million; operating profit: ¥30 million, Item Expected growth rate of the small aluminum electrolytic capacitor market / Value 4 % CAGR
Capital expenditures¥1,128 millions (cumulative through Q3 of the fiscal year ending December 2026, as shown in the graph)
Orders received and order backlogOrders are described as strong, but the amount is not disclosed
Market Size / ShareThe company states that it maintains a 95% global market share in drivetrains for the automotive market. It also provides forecasts for the small aluminum electrolytic capacitor market size, the share for AI servers, and the distance and number of fiber pairs for submarine cable projects
New initiativesPart of the capacity expansion for optical components and devices for submarine cables brought forward, Relocation of front-end equipment in the United States to the head office plant, Sales of FIFO devices supporting multicore fiber for terrestrial applications are scheduled to begin in December 2026, Targeting full-scale mass production of laser-welded products from April 2027, Launch of sales of PLZT single-crystal wafers and development and expansion of sales of optoelectronic integration-related products, Transition to the TSE Prime Market on 26 October 2026
Items this document does not state (8)
Number of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesKey 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 optical components and devices business was driven by strong demand for submarine cables and the effect of new products, while the lead terminal business benefited from a market recovery and growth in the automotive and generative AI server-related markets. On the profit side, the company explained that product mix, improved production efficiency, appropriate pricing and fixed-cost reductions contributed to the improvement.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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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.
Financial Results Briefing Materials for the Third Quarter of the Fiscal Year Ending December 2026 | KOHOKU KOGYO CO.,LTD. (6524) timely disclosure | Komori