Komori
Financial results presentation7827ORVIS CORPORATIONInformation and Communications, Services and Others

Supplementary Explanatory Materials for the Third Quarter Financial Results for the Fiscal Year Ending October 2026

Cumulative nine-month revenue and profit declined substantially due mainly to a decrease in large-scale projects in the House & Eco business. Meanwhile, the order backlog reached a new record high, and the full-year earnings and dividend forecasts were left unchanged.

Worth reading
65In focus
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Direction
Deterioration
Direction inferred from the company’s description.
Scale
-1414
¥ million
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Financial results presentationThird quarter of the fiscal year ending October 20267 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥8,548 million-14.2%
Operating profit¥180 million-67.8%
Ordinary income¥170 million-69.0%
Net income¥91 million-73.7%
Operating profit margin2.1 %
Selling, general and administrative expenses¥1,359 million
Results for the three months of the current quarter
Net Sales
¥2,969 million
Operating profit
¥119 million
Ordinary income
¥115 million
Net income
¥74 million
Full-year earnings forecast
Net Sales
¥13,088 million
Operating profit
¥550 million
Ordinary income
¥524 million
Profit attributable to owners of the parent
¥354 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。
Net Sales65.3 %
Operating profit32.7 %
Ordinary income32.4 %
Profit attributable to owners of the parent25.9 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
House & Eco business sales were substantially below plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net Sales
Sales of timber products and other items-61
Sales of timber products46
House & Eco properties sold-1,249
House & Eco lease properties-168
Other17
Operating profit
Lower product shipment volume-21
Higher selling prices83
Higher log prices-23
Lower yield rate-30
Higher manufacturing costs-29
Other-2
Margin decline-24
Revenue Decline-253
Increase in SG&A expenses-68
Other factors-6
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
4Q sales contribution from the House Eco business order backlogApproximately 35%
New initiatives
  • Stronger sales efforts in the heavy-gauge steel sector
  • Deepening relationships in existing areas, centered on key customers
  • Proposal-based sales in adjacent areas such as light-gauge and heavy-gauge steel
Key KPIsA metric the company considers important as a management benchmark.
  • Volume of logs processed-3.9 % year on year
    Year on year against the same period last year-3.9%
  • Product sales volume0.7 % year on year
    Year on year against the same period last year+0.7%
  • Shipment volume of in-house sawmill products-3.5 % year on year
    Year on year against the same period last year-3.5%
  • Number of attendees1.3 % year on year
    Year on year against the same period last year+1.3%
  • House & Eco Business order backlog¥4,623 million
    Year on year against the same period last year+173.5%
  • Number of estimates prepared999 Engagements
    Year on year against the same period last year+115.6%
  • Estimated value¥28,065 million
    Year on year against the same period last year+185.7%
Segment results
Timber Business
Net Sales
¥5,635 million
Revenue_yoy_pct-0.3
Operating profit
¥218 million
Operating profit_yoy_pct-9.2
House & Eco Business
Net Sales
¥2,290 million
Revenue_yoy_pct-38.2
Operating profit
¥-18 million
Operating profit_yoy_pctOperating loss
Solar Power Sales Business
Net Sales
¥323 million
Revenue_yoy_pct-0.4
Operating profit
¥218 million
Operating profit_yoy_pct1.4
Life Create Business
Net Sales
¥297 million
Revenue_yoy_pct6.5
Operating profit
¥32 million
Operating profit_yoy_pct15.7
Orders received and order backlog
Orders received
¥4,135 million
Order backlog
¥4,623 million
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredThird quarter of the fiscal year ending October 2026
Net Sales¥8,548 million (YoY -14.2%)
Operating profit¥180 million (YoY -67.8%)
Ordinary income¥170 million (YoY -69.0%)
Net income¥91 million (YoY -73.7%)
Operating profit margin2.1 %
Selling, general and administrative expenses¥1,359 million
Results for the three months of the current quarterNet Sales ¥2,969 million / Operating profit ¥119 million / Ordinary income ¥115 million / Net income ¥74 million
Full-year earnings forecastNet Sales ¥13,088 million / Operating profit ¥550 million / Ordinary income ¥524 million / Profit attributable to owners of the parent ¥354 million
Progress against full-year forecastNet Sales 65.3 % / Operating profit 32.7 % / Ordinary income 32.4 % / Profit attributable to owners of the parent 25.9 %
Self-assessment against the planHouse & Eco business sales were substantially below plan
Segment resultsTimber Business Net Sales ¥5,635 million / Revenue_yoy_pct -0.3 / Operating profit ¥218 million / Operating profit_yoy_pct -9.2 / House & Eco Business Net Sales ¥2,290 million / Revenue_yoy_pct -38.2 / Operating profit ¥-18 million / Operating profit_yoy_pct Operating loss / Solar Power Sales Business Net Sales ¥323 million / Revenue_yoy_pct -0.4 / Operating profit ¥218 million / Operating profit_yoy_pct 1.4 / Life Create Business Net Sales ¥297 million / Revenue_yoy_pct 6.5 / Operating profit ¥32 million / Operating profit_yoy_pct 15.7
Breakdown of Factors Affecting the ChangeNet Sales Sales of timber products and other items -61 / Sales of timber products 46 / House & Eco properties sold -1,249 / House & Eco lease properties -168 / Other 17 / Operating profit Lower product shipment volume -21 / Higher selling prices 83 / Higher log prices -23 / Lower yield rate -30 / Higher manufacturing costs -29 / Other -2 / Margin decline -24 / Revenue Decline -253 / Increase in SG&A expenses -68 / Other factors -6
Key KPIsIndicator name Volume of logs processed / Value -3.9 % year on year / Year on year against the same period last year -3.9 % year on year, Indicator name Product sales volume / Value 0.7 % year on year / Year on year against the same period last year 0.7 % year on year, Indicator name Shipment volume of in-house sawmill products / Value -3.5 % year on year / Year on year against the same period last year -3.5 % year on year, Indicator name Number of attendees / Value 1.3 % year on year / Year on year against the same period last year 1.3 % year on year, Indicator name House & Eco Business order backlog / Value ¥4,623 million / Year on year against the same period last year ¥173.5 million, Indicator name Number of estimates prepared / Value 999 Engagements / Year on year against the same period last year 115.6 Engagements, Indicator name Estimated value / Value ¥28,065 million / Year on year against the same period last year ¥185.7 million
Assumptions Underlying the Business Outlook4Q sales contribution from the House Eco business order backlog Approximately 35%
Orders received and order backlogOrders received ¥4,135 million / Order backlog ¥4,623 million
New initiativesStronger sales efforts in the heavy-gauge steel sector, Deepening relationships in existing areas, centered on key customers, Proposal-based sales in adjacent areas such as light-gauge and heavy-gauge steel
Items this document does not state (13)
Gross Profit MarginUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition 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.

The House & Eco business experienced lost orders, postponements of large-scale projects and delays in construction starts, while sales in the heavy-gauge steel segment remained sluggish. In the timber business, lower log consumption volume increased manufacturing costs per unit. Company-wide SG&A expenses increased, mainly due to higher personnel costs resulting from increased staffing and base-pay increases.

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Supplementary Explanatory Materials for the Third Quarter Financial Results for the Fiscal Year Ending October 2026 | ORVIS CORPORATION (7827) timely disclosure | Komori