Yamato Kogyo Co (5444) investor relations material

Executive summary

• Group-wide sales volume rose 6.5% year-over-year to 984,000 tons, driven by overseas operations despite weak domestic demand and market headwinds in Japan and ASEAN.

• Net sales for the three months ended June 30, 2026, were ¥39,195 million, nearly flat year-on-year, with significant profit growth driven by U.S. operations despite challenging conditions in Japan and ASEAN.

• U.S. operations delivered robust earnings due to strong demand, while Japan and ASEAN faced challenges from low-priced Chinese steel and Middle East instability.

• Operating profit turned negative at ¥446 million, down from ¥1,115 million year-on-year, while ordinary profit surged to ¥22,151 million, mainly due to strong equity-method affiliate performance in the U.S.

• Extraordinary loss of 3.1 billion yen was recorded for discount expense on long-term receivables related to the Middle East business.

Financial highlights

• Net sales for Q1 FY2027/3 were flat year-over-year at 391 billion yen.

• Ordinary profit surged 112.3% year-over-year to 22.1 billion yen; profit attributable to owners of parent rose 107.9% to 12.2 billion yen.

• Operating profit margin dropped to -1.1% (down 4.0pp YoY); ordinary profit margin increased to 56.5% (up 29.9pp YoY).

• ROE improved to 9.0% (up 4.6pp YoY); capital adequacy ratio remained high at 84.6%.

• Basic EPS: ¥205.71 (up from ¥95.70 year-on-year).

Outlook and guidance

• FY2027/3 ordinary profit forecast raised 33.4% YoY to 87.0 billion yen, with U.S. business expected to remain strong and other regions facing persistent challenges.

• Net sales forecast increased to 1,780 billion yen (+11.0% YoY); operating profit expected to decline 28.8% YoY to 3.2 billion yen.

• Dividend forecast unchanged at ¥400 per share for the full year.

• Focus on strengthening sales strategies, cost reduction, and addressing Chinese steel influx.