Komori
Revision of earnings forecasts7822Eidai Co.,Ltd.Information and Communications, Services and Others

Notice concerning the recognition of an extraordinary loss (impairment loss at a consolidated subsidiary), revision of earnings forecasts, and expected breach of financial covenants

The company expects to recognize an impairment loss of ¥5 billion on fixed assets held by its consolidated subsidiary ENボード and has downwardly revised its full-year consolidated earnings forecasts for the fiscal year ending March 2026. While revenue, operating profit, ordinary profit, and net income attributable to owners of the parent have been reduced, the annual dividend forecast remains unchanged.

Worth reading
73In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
-3500
¥ million
Wording
Avoiding a definitive answer
How definitive the wording is.

Revised forecast

Fiscal year ending March 2026 · Full yearPrevious forecast published 13 May 2025
Net Sales74,500→73,500million
-1.3%
Operating profit800→600million
-25.0%
Ordinary income600→400million
-33.3%
Profit attributable to owners of the parent500→-3,000million
-700.0%
Net income per share11.31→-67.88yen and sen
-700.2%

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

Revenue in the housing materials business is expected to fall below the previous forecast due to the sluggish number of new housing starts. Although profit growth is expected in the housing materials business, it will not offset delays in improving profitability in the wood-based board business, resulting in lower-than-forecast operating profit and ordinary profit. In addition, the company expects to recognize an impairment loss on fixed assets held by ENボード株式会社 as an extraordinary loss, resulting in lower net income attributable to owners of the parent.

Details and amount of extraordinary loss

The company expects to recognize an impairment loss of ¥5 billion on fixed assets held by ENボード株式会社 as an extraordinary loss.

Previous-period resultsRevenue: ¥71,202 million; operating loss: ¥293 million; ordinary loss: ¥398 million; net loss attributable to owners of the parent: ¥29 million; basic loss per share: ¥0.66 (fiscal year ended March 2025)
Dividend forecast revisionNo change from the year-end dividend forecast of ¥5, or an annual dividend of ¥10
Consolidated / non-consolidatedConsolidated
Revised forecast
ItemDetails
Net Sales¥74,500 million → ¥73,500 million(-1.3%)
Operating profit¥800 million → ¥600 million(-25.0%)
Ordinary income¥600 million → ¥400 million(-33.3%)
Profit attributable to owners of the parent¥500 million → ¥-3,000 million
Net income per share11.31 yen and sen → -67.88 yen and sen
Fiscal Period CoveredFiscal year ending March 2026
Period CoveredFull year
Publication date of previous forecast13 May 2025
Previous-period resultsRevenue: ¥71,202 million; operating loss: ¥293 million; ordinary loss: ¥398 million; net loss attributable to owners of the parent: ¥29 million; basic loss per share: ¥0.66 (fiscal year ended March 2025)
Reason for the revisionRevenue in the housing materials business is expected to fall below the previous forecast due to the sluggish number of new housing starts. Although profit growth is expected in the housing materials business, it will not offset delays in improving profitability in the wood-based board business, resulting in lower-than-forecast operating profit and ordinary profit. In addition, the company expects to recognize an impairment loss on fixed assets held by ENボード株式会社 as an extraordinary loss, resulting in lower net income attributable to owners of the parent.
Details and amount of extraordinary lossThe company expects to recognize an impairment loss of ¥5 billion on fixed assets held by ENボード株式会社 as an extraordinary loss.
Dividend forecast revisionNo change from the year-end dividend forecast of ¥5, or an annual dividend of ¥10
Consolidated / non-consolidatedConsolidated

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue is expected to fall below the previous forecast due to the sluggish number of new housing starts. Although profit growth is expected in the housing materials business, it will not offset delays in improving profitability in the wood-based board business, resulting in lower-than-forecast operating profit and ordinary profit. In addition, the company expects to recognize an impairment loss of ¥5 billion on fixed assets held by ENボード as an extraordinary loss, resulting in a significant decline in net income attributable to owners of the parent.

How to read this page

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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.
Notice concerning the recognition of an extraordinary loss (impairment loss at a consolidated subsidiary), revision of earnings forecasts, and expected breach of financial covenants | Eidai Co.,Ltd. (7822) timely disclosure | Komori