Aichi Steel (5482) investor relations material

Executive summary

• Achieved record highs in revenue and operating profit for the fiscal year ended March 2026, with sales and profits increasing year-over-year.

• Revenue increased by 1.7% year-over-year to ¥304,341 million, and operating profit rose 44.6% to ¥17,371 million.

• Profit attributable to owners of parent grew 43.8% to ¥11,248 million.

• Comprehensive income surged to ¥39,006 million from a loss of ¥10,644 million in the prior year, driven by strong other comprehensive income.

• Operating profit growth was driven by lower purchase prices, plant cost reductions, and higher subsidiary profits.

Financial highlights

• Net sales rose to 304.3 billion yen (+2% YoY), operating profit reached 17.3 billion yen (+45% YoY), and profit attributable to owners of parent was 11.2 billion yen (+44% YoY).

• Gross profit increased from ¥39,941 million to ¥46,339 million year-over-year.

• Basic earnings per share rose to ¥170.63 from ¥99.50, reflecting a 4-for-1 share split.

• ROE improved to 4.8% from 3.2% YoY.

• Sales volume increased by 2% to 980 thousand tons.

Outlook and guidance

• FY2027 forecast: net sales of 310 billion yen (+2%), operating profit of 17.5 billion yen (+1%), and net profit of 11.3 billion yen (+0%).

• Annual dividend forecast for FY2027 is ¥150.00 per share (post-split basis), with a payout ratio of 85%.

• Forecast does not reflect potential impact from sharp rises in purchase prices due to geopolitical risks.

• Plans to offset higher purchase prices with increased selling prices, sales volumes, and cost reductions.