Recovery continued in aircraft, furniture and other applications, while weakness in automotive remained

Revenue in the first half of fiscal 2026 was ¥10.919 billion, up 8.2% year on year. By application, aircraft was strongest at ¥2.128 billion, up 16.8% year on year, followed by furniture, up 13.1%, and other applications, up 13.6%. In aircraft, higher sales were attributed to an expanded customer base for commercial aircraft and the recovery of business-jet demand to a stable level.

In furniture, new programs for contract furniture and major customers in healthcare and other areas contributed. However, the housing market remains weak, and the current disclosure does not indicate whether overall growth in furniture applications reflects a recovery in housing demand or is concentrated in contract furniture and healthcare. At the next earnings announcement, the breakdown of contract furniture, healthcare and residential furniture sales, as well as the sales contribution from new programs, will be key points to monitor.

Automotive sales declined 0.9% year on year, with the increase in aircraft, furniture and other applications largely offsetting the decline. While the company described a recovery in small automotive components, it also reported declines at some customers for seat materials, indicating diverging demand within automotive applications. Volumes for automotive applications, customer-by-customer changes, and the impact of model changes or delays to certain programs were not disclosed.

Because the company has a single reportable segment, it discloses sales by application but not operating profit or profit margins by application. Accordingly, at the next earnings announcement it will be necessary to confirm whether aircraft sales can maintain their 16.8% year-on-year growth, whether double-digit growth in furniture and other applications continues, and whether automotive sales turn positive year on year, then assess at company level whether the increase in revenue is translating into improved operating profit.