Rinnai (5947) Q3 2026 earnings summary

Executive summary

• Achieved record-high net sales, operating income, ordinary income, and net income attributable to owners for the first three quarters of fiscal 2026, with net sales reaching ¥339,391 million, up 2.1% year-on-year.

• Growth was driven by strong performance in Japan, the US, and Australia, offsetting declines in China and South Korea.

• Profitability was supported by ongoing cost-cutting, higher sales of high-value-added, energy-efficient products, and robust core product sales.

• The business environment was impacted by unstable government policies, geopolitical risks, and raw material price increases.

Financial highlights

• Net sales: ¥339.3 billion, up 2.1% year-on-year; operating income: ¥37.1 billion, up 5.9%; ordinary income: ¥41.8 billion, up 7.6%; net income attributable to owners: ¥27.5 billion, up 20.4%.

• Net income per share: ¥197.54, up from ¥161.22 in the prior year.

• Gross profit improved to ¥118,246 million from ¥112,910 million year-over-year.

• Total assets at December 31, 2025, were ¥594,551 million, down from ¥606,586 million at March 31, 2025.

• Equity ratio increased to 68.8% from 66.9% at the previous fiscal year-end.

Outlook and guidance

• Full-year forecasts maintained: net sales ¥470 billion, operating income ¥50 billion, ordinary income ¥53.5 billion, net income ¥33 billion.

• No changes to previously announced performance forecasts.

• Expect to absorb rising costs in Q4; results progressing in line with plan.

• Copper prices and FX fluctuations remain key uncertainties.