Yamato Kogyo Co (5444) Q4 2026 earnings summary

Executive summary

• Operating environment was challenging globally due to overproduction in China and weak demand outside the U.S.; U.S. operations remained robust, driving consolidated performance.

• Middle East business exited with a share sale, resulting in a ¥5.8 billion loss and a ¥22.2 billion reversal of foreign currency translation adjustment.

• Japan and ASEAN segments faced declining sales and profits due to high costs and competition from low-priced Chinese steel.

• U.S. affiliate saw profit growth from strong demand and favorable market conditions; Vietnam and South Korea affiliates had mixed results.

Financial highlights

• Net sales decreased by ¥7,878 million year-over-year to ¥160,389 million.

• Operating profit dropped by ¥6,998 million to ¥4,495 million; ordinary profit rose by ¥10,833 million to ¥65,235 million.

• Profit attributable to owners of parent increased by ¥30,556 million to ¥62,389 million.

• Comprehensive income fell to ¥35,215 million from ¥78,966 million year-over-year.

• Cash and cash equivalents at year-end decreased by ¥48,563 million to ¥75,458 million.

Outlook and guidance

• FY2027 full-year forecast: net sales ¥166,000 million (+3.5%), operating profit ¥4,500 million (+0.1%), ordinary profit ¥68,000 million (+4.2%), profit attributable to owners of parent ¥47,000 million (–24.7%).

• U.S. segment expected to maintain high profitability; Japan and ASEAN to remain challenging but with some recovery in Thailand and Indonesia.

• Risks include Middle East tensions, oil prices, logistics disruptions, and continued Chinese steel exports.