YAMATO KOGYO (5444) Q2 2026 earnings summary

Executive summary

• Group-wide sales volume for FY2026/3 Q2 fell 26.6% year-over-year to 1.91 million tons, mainly due to withdrawal from the Middle East business.

• Net sales for the six months ended September 30, 2025, decreased 2.8% year-over-year to ¥76,180 million, with operating profit down 53.6% to ¥1,994 million and profit attributable to owners of parent down 32.3% to ¥19,133 million.

• Ordinary profit dropped 32.2% year-over-year to 27.9 billion yen, with operating profit margin at 2.6% (down 2.8pp YoY).

• U.S. operations remained a core profit source, supported by strong demand and U.S. tariff measures.

• Additional loss of 5.7 billion yen recognized in Q1 related to the Middle East business share transfer.

Financial highlights

• Net sales for FY2026/3 Q2 were 745 billion yen, down 2.8% year-over-year.

• Operating profit for the period was 13 billion yen, down 53.6% year-over-year.

• Profit attributable to owners of parent was 16.5 billion yen, down 32.3% year-over-year.

• Ordinary profit dropped 32.2% to 27.9 billion yen; comprehensive income turned negative at (11.16) billion yen.

• Basic earnings per share decreased to 310.82 yen from 443.47 yen year-over-year.

Outlook and guidance

• FY2026/3 full-year ordinary profit forecast raised to 56.0 billion yen (+19.4% YoY), with net sales expected at 1560 billion yen (+7.3% YoY).

• Operating profit forecast revised up to 35 billion yen (+75% vs previous forecast), but still down year-over-year.

• U.S. and Thailand operations are expected to outperform previous forecasts, while Japan and Indonesia remain challenged by weak demand and competition.

• Continued global steel market softness and intense price competition expected, except for the U.S. business.

• Strategic focus on countermeasures against low-priced Chinese steel and cost reductions.