Mitsui High-tec (6966) Q3 2026 earnings summary

Executive summary

• Net sales rose 3.0% year-over-year to JPY 162,981 million, driven by strong demand for electric vehicle motor cores, but operating profit declined 19.5% to JPY 9,229 million and net profit decreased 20.7% to JPY 7,412 million.

• The economic environment showed gradual recovery, but uncertainty persisted due to US policy trends, a slowing Chinese economy, and unstable international conditions.

• Despite foreign exchange gains from yen depreciation, profits were pressured by upfront investments and higher company-wide costs.

Financial highlights

• Net sales: JPY 162,981 million (+3.0% YoY); Operating profit: JPY 9,229 million (-19.5% YoY); Net profit: JPY 7,412 million (-20.7% YoY); EBITDA: JPY 19,243 million (-12.9% YoY); EBITDA margin: 11.8% (-2.2ppt YoY).

• Gross profit for the nine months was JPY 23,572 million, up slightly from JPY 23,397 million year-over-year.

• Comprehensive income decreased 32.2% year-over-year to JPY 6,940 million.

• Capital investment increased 22.5% YoY to JPY 23,706 million.

• Depreciation decreased 5.8% YoY to JPY 10,013 million due to a change in depreciation method.

Outlook and guidance

• Full-year consolidated earnings forecasts remain unchanged: net sales of JPY 216,000 million (+0.5% YoY), operating profit of JPY 11,000 million (-31.3%), and net profit of JPY 7,000 million (-42.7%).

• Electrical Parts Business operating profit expected to exceed full-year forecast due to EV demand and cost control, while Electronic Parts Business is projected below forecast amid slow semiconductor market recovery.

• Dividend forecast unchanged at 18 yen per share, maintaining stable and continuous dividends.

• Ongoing monitoring of customer production adjustments and market fluctuations beyond 2026.

• Basic earnings per share for the full year is forecast at JPY 38.30.