A substantial recovery in profit in the fourth quarter is needed to meet the full-year forecast

For the cumulative third quarter of FY2026 ending September, revenue was ¥4,177 million, the operating loss was ¥96 million, the ordinary loss was ¥43 million, and net loss attributable to owners of the parent was ¥6 million. Revenue increased from ¥2,733 million in the cumulative second quarter, but operating results did not improve from the ¥91 million loss recorded in the cumulative second quarter. The company moved to non-consolidated accounting from the third quarter, and no simple year-on-year comparison has been disclosed.

The full-year forecast presented by the company is revenue of ¥7,000 million, operating profit of ¥430 million, ordinary profit of ¥460 million, and net profit of ¥330 million. Based on the cumulative third-quarter results, the fourth quarter would need to generate revenue of ¥2,823 million, operating profit of ¥526 million, ordinary profit of ¥503 million, and net profit of ¥336 million. Revenue of ¥2,823 million would represent 40.3% of the full-year forecast, while a simple calculation implies a fourth-quarter operating margin of 18.6%. This is a level that requires not only a recovery in revenue, but also simultaneous improvement in the profitability of equipment projects and absorption of fixed costs.

The company attributes the declines in revenue and profit to a temporary slowdown in the power semiconductor market, lower equipment sales to overseas users, and failure to meet plans for orders for certain equipment. Although reductions in manufacturing costs and other expenses are continuing, they were not sufficient to offset the decline in revenue from the electronic equipment business during the cumulative third quarter. Higher raw-material costs, geopolitical conditions, and supply-chain disruptions also remain factors that could affect shipment timing and gross margins.

At the next full-year results announcement, it will be necessary to confirm not only whether fourth-quarter revenue reached ¥2,823 million, but also which businesses generated that revenue: electronic equipment, textile equipment, or medical equipment. It will be important to determine whether operating profit reached at least the full-year forecast of ¥430 million and, if it fell short, whether the cause was a shift in order timing, deterioration in project profitability, or the burden of fixed costs, and whether this can be disclosed on a disaggregated basis. The history of revisions to the full-year forecast, the next fiscal year's forecast on a non-consolidated basis, and whether the annual dividend of ¥40 can be maintained should also be reviewed.