Kyowakogyosyo (5971) Q3 2026 earnings summary

Executive summary

• Revenue for the third quarter increased by 2.9% year-over-year to ¥7,956 million, with operating profit up 22.0% to ¥745 million and net profit attributable to shareholders rising 27.2% to ¥619 million.

• The business environment saw continued high raw material and energy costs, but personal consumption and wage increases supported a moderate economic recovery.

• The main customer industry, construction machinery, faced uncertainty due to China's slowdown and US tariffs, prompting a focus on cost management.

Financial highlights

• Operating profit rose to ¥745 million, a 22.0% increase year-over-year; recurring profit reached ¥890 million, up 25.0%.

• Comprehensive income surged 165.4% year-over-year to ¥1,237 million.

• Earnings per share for the quarter were ¥475.77, up from ¥366.45 a year earlier.

• Total assets at quarter-end were ¥19,069 million, up ¥917 million from the previous year-end.

• Net assets increased by ¥1,133 million to ¥16,789 million.

Outlook and guidance

• Full-year revenue is forecast at ¥10,300 million, a 1.5% decrease year-over-year.

• Operating profit is projected at ¥900 million (down 3.5%), recurring profit at ¥900 million (down 3.4%), and net profit at ¥610 million (down 13.9%).

• No changes have been made to the previously announced full-year forecast.