FY2026 first half: operating resilience coexisted with a decline in net income

Consolidated revenue for the first half of the fiscal year ending December 2026 was ¥4,793.7 million, down 1.2% from ¥4,853.6 million in the previous first half. Operating income was ¥660.4 million, nearly unchanged from ¥666.0 million a year earlier, while ordinary income increased 1.6% year on year to ¥724.7 million. The basic first-half pattern was that the company maintained operating earnings despite lower revenue and secured higher earnings at the ordinary-income level, including non-operating gains and losses.

In contrast, interim net income attributable to owners of the parent was ¥447.0 million, down 18.7% from ¥549.6 million in the previous first half. The previous first half included ¥1,447 million in relocation compensation related to the relocation of facilities, recorded as an extraordinary gain, but no such gain was recorded in the current first half. This difference is unrelated to the deterioration in operating or ordinary income, and the third quarter will need to distinguish between the level of core earnings and the reversal of the extraordinary gain.

At the first-quarter stage, the combination was also mixed: revenue of ¥2,545.3 million was down 3.0% year on year, operating income of ¥366.7 million was up 8.1%, ordinary income of ¥392.3 million was up 7.4%, and net income of ¥240.4 million was down 25.5%. In the second-quarter cumulative results, operating income declined to roughly the previous-year level while ordinary income remained higher year on year. The key point for the third quarter is whether the seasonality of the gas business and the contribution from the iodine business can push operating income higher again.

In the first quarter, there were no extraordinary gains, while a ¥99 million loss on the disposal of fixed assets was recorded as an extraordinary loss. Accordingly, in the next earnings release, we will check whether a large one-off gain such as relocation compensation recurs and whether extraordinary losses such as losses on the disposal of fixed assets increase, alongside the year-on-year comparison of net income.