Hisaka Works (6247) investor relations material

Executive summary

• Net sales reached a record high of ¥44,890 million, up 17.0% year-over-year, driven by strong performance in Heat Exchanger and Valve businesses and large-scale projects in Process Engineering.

• Orders received increased 0.8% year-over-year to ¥42,591 million.

• Operating profit rose 12.7% year-over-year to ¥3,303 million, while ordinary profit increased 6.8% to ¥3,620 million.

• Profit attributable to owners of parent declined 8.8% year-over-year to ¥3,449 million due to extraordinary losses from plant restructuring and environmental measures, despite gains from sale of strategic shareholdings.

• All segments contributed to sales growth, with notable strength in process engineering and overseas sales.

Financial highlights

• Net sales exceeded forecasts by 2.0%, and operating profit surpassed forecasts by 10.1%.

• Gross profit rose to ¥10,377 million from ¥9,773 million year-over-year.

• Comprehensive income surged to ¥6,294 million, up 221.6% year-over-year, mainly due to valuation gains on available-for-sale securities.

• Basic earnings per share was ¥130.21, down from ¥135.78 the previous year.

• Net assets increased to ¥63,280 million, with a capital adequacy ratio of 75.9%.

Outlook and guidance

• FY2026 orders received are forecast to rise 10.4% to ¥47,000 million, but net sales are expected to decrease 2.0% to ¥44,000 million.

• Operating profit is projected to remain stable at ¥3,300 million, with a slight decrease in profit margin.

• Fiscal year ending March 2027 forecast: net sales ¥44,000 million, operating profit ¥3,300 million, ordinary profit ¥3,600 million, profit attributable to owners of parent ¥2,410 million, and EPS ¥91.66.

• Management targets operating income of ¥5.0 billion by fiscal 2028 under the new medium-term plan “Challenge2028.”

• Segment forecasts show strong growth in heat exchanger orders and profit, but a decline in process engineering sales and profit.