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Presentation materials for financial results7726KURODA PRECISION INDUSTRIES LTD.Machinery

Supplementary Explanatory Materials for the Fiscal Year Ending March 2026 Results

For the fiscal year ended March 2026, revenue and orders received increased, while operating income and ordinary income declined, and the bottom line was in the red. For the fiscal year ending March 2027, the company expects higher revenue and profits and an annual dividend of ¥20, based on the start of mass production for new projects and a recovery in orders.

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Contents of this document

Supplementary materials to the earnings reportFiscal year ending March 20268 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥19,501 million+12.8%
Operating profit¥32 million-89.4%
Ordinary income¥11 million-97.4%
Net income¥-96 million-156.4%
Full-year earnings forecast
Net Sales
¥25,800 million
Operating profit
¥770 million
Ordinary income
¥550 million
Profit attributable to owners of the parent
¥330 million
Annual dividend per share
¥20 per share
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Change in operating profit
¥-279 million
Gain on sale of securities
¥180 million
Subsidy Income
¥276 million
Impairment
¥-207 million
Business Structure Reform
¥-240 million
Other
¥-147 million
New initiatives
  • Measures to increase production in the Drive Systems business
  • Start of mass production for new motor core projects in the Die Systems business
  • Consideration of establishing a production system for the Chinese market
  • Partner strategy to expand sales of motor cores using new materials
  • Expand sales of energy-efficient machine tools, streamline the product lineup, and improve business efficiency
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received¥20,749 million
    Year on year against the same period last year+13.8%
Segment results
Drive Systems Business
Orders received
¥7,765 million+22.5%
Net Sales
¥6,480 million+1.7%
Operating profit (loss)
¥-186 million-61.0%
Die and Mold Systems Business
Orders received
¥8,855 million+4.7%
Net Sales
¥9,139 million+20.8%
Operating profit (loss)
¥49 million-530.0%
Machine Tool and Measurement Systems business
Orders received
¥4,152 million+20.1%
Net Sales
¥3,905 million+16.2%
Operating profit (loss)
¥176 million+279.0%
Financial targets
Equity ratio
Actual results39.2 %
Year-on-year change (points)-4.3 %
Orders received and order backlog
Orders received
¥20,749 million
Annual Dividend
Annual dividend per share
¥20 per share
Interim Dividend
¥5 per share
Year-end dividend
¥15 per share
Payout ratio
34.3 %
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥19,501 million (YoY +12.8%)
Operating profit¥32 million (YoY -89.4%)
Ordinary income¥11 million (YoY -97.4%)
Net income¥-96 million (YoY -156.4%)
Full-year earnings forecastNet Sales ¥25,800 million / Operating profit ¥770 million / Ordinary income ¥550 million / Profit attributable to owners of the parent ¥330 million / Annual dividend per share ¥20 per share
Segment resultsDrive Systems Business Orders received ¥7,765 million (YoY +22.5%) / Net Sales ¥6,480 million (YoY +1.7%) / Operating profit (loss) ¥-186 million (YoY -61.0%) / Die and Mold Systems Business Orders received ¥8,855 million (YoY +4.7%) / Net Sales ¥9,139 million (YoY +20.8%) / Operating profit (loss) ¥49 million (YoY -530.0%) / Machine Tool and Measurement Systems business Orders received ¥4,152 million (YoY +20.1%) / Net Sales ¥3,905 million (YoY +16.2%) / Operating profit (loss) ¥176 million (YoY +279.0%)
Breakdown of Factors Affecting the ChangeChange in operating profit ¥-279 million / Gain on sale of securities ¥180 million / Subsidy Income ¥276 million / Impairment ¥-207 million / Business Structure Reform ¥-240 million / Other ¥-147 million
Key KPIsOrders received ¥20,749 million
Financial targetsEquity ratio Actual results 39.2 % / Year-on-year change (points) -4.3 %
Annual DividendAnnual dividend per share ¥20 per share / Interim Dividend ¥5 per share / Year-end dividend ¥15 per share
Payout ratio34.3 %
Orders received and order backlogOrders received ¥20,749 million / Order backlog Not disclosed
New initiativesMeasures to increase production in the Drive Systems business, Start of mass production for new motor core projects in the Die Systems business, Consideration of establishing a production system for the Chinese market, Partner strategy to expand sales of motor cores using new materials, Expand sales of energy-efficient machine tools, streamline the product lineup, and improve business efficiency
Items this document does not state (16)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition of treasury sharesCapital expendituresMarket 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.

Orders received increased due to equipment related to new projects in the Die Systems business and a recovery in orders in the Drive Systems business. Revenue increased despite the impact of China's export restrictions on rare-earth magnets, driven by higher sales of new equipment in the Die Systems business and in the Machine Tool & Measurement Systems segment. Profit declined because of lower margins resulting from the product mix, higher depreciation and amortization, and increased losses at the German subsidiary. The company posted a net loss due to extraordinary losses, including restructuring costs in Germany.

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Supplementary Explanatory Materials for the Fiscal Year Ending March 2026 Results | KURODA PRECISION INDUSTRIES LTD. (7726) timely disclosure | Komori