YAMATO KOGYO (5444) Q3 2026 earnings summary

Executive summary

• Group-wide sales volume for the nine months ended December 2025 fell 29.3% year-over-year to 2.87 million tons, mainly due to withdrawal from the Middle East business.

• Net sales for the nine months ended December 31, 2025, decreased by ¥8,226 million year-over-year to ¥118,021 million, with operating profit down ¥5,173 million to ¥3,418 million.

• Ordinary profit rose 28.2% year-over-year to ¥47.8 billion, and profit attributable to owners of parent increased 77.4% to ¥33.8 billion.

• U.S. operations remained strong, benefiting from tariff measures and robust demand, while Asian markets faced weak demand and intense competition from low-priced Chinese steel.

• Additional loss of ¥5.6 billion recognized related to the Middle East business share transfer, expected to close by fiscal year-end.

Financial highlights

• Operating profit margin dropped 3.9pp year-over-year to 2.9%.

• Basic earnings per share for the nine months was ¥553.28, up from ¥300.11 year-over-year.

• Comprehensive income fell to ¥18,927 million from ¥25,438 million year-over-year, mainly due to foreign currency translation losses.

• Operating cash flow was ¥41.3 billion; free cash flow reached ¥34.5 billion.

• Cash and cash equivalents at period end decreased by ¥76,986 million to ¥47,035 million.

Outlook and guidance

• FY2026/3 full-year net sales forecast revised up to ¥161,000 million (+3.2% vs. previous forecast).

• Operating profit forecast at ¥4,000 million (+14.3% vs. previous forecast), ordinary profit at ¥60,000 million (+7.1%), and profit attributable to owners of parent at ¥53,000 million (+39.5%).

• Extraordinary gain of ¥13.0 billion from sale of investment securities to be recorded.

• U.S. segment expected to see profit growth; Japan, Indonesia, and South Korea forecasted to decline; Thailand and Vietnam mixed.

• Demand for steel expected to remain weak globally, except for the U.S. market.