Kaga Electronics : Summary of Consolidated Financial Results for the Third Quarter Ended December 31, 2025

About this update from Kaga Electronics Co., Ltd.

February 12, 2026 Summary of Consolidated Financial Results for the Third Quarter Ended December 31, 2025 [Japan GAAP] Name of Company: KAGA ELECTRONICS CO., LTD. Stock Code: 8154 URL: https://www.taxan.co.jp/ Stock Exchange Listing: Tokyo Stock Exchange, Prime Market Representative Title: Representative Director, President & COO Contact Person Title: Director, Senior Executive Officer Head of Administration Headquarters Phone: +81-(0)3-5657-0111 Date of commencement of dividend payment (tentative): -Earnings supplementary explanatory documents: Yes Earnings presentation: None Name: Ryoichi Kado Name: Yasuhiro Ishihara ( Yen in millions, rounded down ) Financial results for the third quarter of the fiscal year ending March 2026 (April 1, 2025 -December 31, 2025) Result of operations (Consolidated, year-to-date) ( Percentage figures represent year on year changes ) Net sales Operating income Ordinary income Profit attributable to owners of parent Third quarter ended December 2025 Third quarter ended December 2024 Million yen 445,475 396,243 % 12.4 (2.5) Million yen 19,449 18,056 % 7.7 (11.9) Million yen 20,766 18,379 % 13.0 (9.5) Million yen 24,308 12,714 % 91.2 (20.5) Note: Comprehensive income: 3Q of FY3/2026: 28,977 million yen ［62.9%］3Q of FY3/2025: 17,790 million yen ［(14.0%)］ Earnings per share Earnings per share (diluted) Yen Yen Third quarter ended December 2025 485.11 - Third quarter ended December 2024 241.97 - Notes: The Company conducted a two-for-one stock split of its common stock effective October 1, 2024. Earnings per share is calculated on the assumption that the stock split was conducted at the beginning of the fiscal year ended March 2024. Note that diluted earnings per share is indicated as "-" because there are no diluted shares. Financial Position (Consolidated) Total assets Net assets Equity ratio Million yen Million yen % As of December 31, 2025 343,171 174,699 50.9 As of March 31, 2025 305,671 166,379 54.4 Reference: Shareholdersʼ equity As of December 31, 2025: 174,703 million yen As of March 31, 2025: 166,218 million yen Dividends Dividend per share Dividend payout ratio (Consolidated) 1Q 2Q 3Q Year-end Full year Fiscal year ended March 2025 Yen - Yen 110.00 Yen - Yen 55.00 Yen - % 33.8 Fiscal year ending March 2026 - 60.00 - Fiscal year ending March 2026 (Forecast) 70.00 130.00 22.6 Notes: 1. Change in the dividend forecast from the latest announcement: Yes Breakdown of interim dividend for 2026/3: Ordinary dividend: 55.00 yen; Extraordinary dividend: 5.00 yen Breakdown of year-end dividend for 2026/3(Forecast): Ordinary dividend: 55.00 yen; Extraordinary dividend: 15.00 yen With respect to the revision of dividend forecast, please refer to "Notice Regarding Upward Revision to Forecasts for Full-Year Earnings and Dividends (Dividend Increase)" , announced today (February 12, 2026). 2. The Company conducted a two-for-one stock split of its common stock effective October 1, 2024. The amount of the year-end dividend per share presented above for the fiscal year ended March 2025 takes into account the effect of the stock split, and the full-year dividend amount is indicated as "-". Assuming that the stock split was conducted at the beginning of the previous fiscal year, the interim dividend would be 55.00 yen, and the full year dividend per share would be 110.00 yen. Forecast for the fiscal year ending March 2026 (Consolidated, April 1, 2025 - March 31, 2026) ( Percentage figures represent year on year changes ) Net sales Operating income Ordinary income Profit attributable to owners of parent Earnings per share Full year Million yen 620,000 % 13.2 Million yen 27,000 % 14.4 Million yen 28,000 % 23.9 Million yen 28,500 % 66.8 Yen 575.24 Notes: Change in the forecast from the latest announcement: Yes With respect to the revision of consolidated performance forecast, please refer to "Notice Regarding Upward Revision to Forecasts for Full-Year Earnings and Dividends (Dividend Increase)", announced today (February 12, 2026). Notes Significant changes in the scope of consolidation during the period: Yes New: 7 (Company Name): Kyoei Sangyo Co., Ltd. and six other companies Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements : None Changes in accounting policies, estimates, and retrospective restatement Changes due to revision of accounting standards : None Changes other than (a) : None Changes in accounting estimates : None Retrospective restatement : None Number of shares outstanding (common stock) Shares outstanding (including treasury shares) As of December 31, 2025: 52,486,836 As of March 31, 2025 57,404,236 Treasury shares As of December 31, 2025: 4,827,764 As of March 31, 2025 4,847,842 Average number of shares (quarterly consolidated during the period) Period ended December 31, 2025: 50,109,822 Period ended December 31, 2024: 52,547,921 Notes: 1. The Company conducted a two-for-one stock split of its common stock effective October 1, 2024. The average number of shares (quarterly consolidated during the period) was calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year. 2. As a result of the cancellation of treasury shares on August 18, 2025, the number of shares issued at the end of the fiscal year decreased by 4,917,400 shares. Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or audit firm : None Cautionary statement regarding forecasts of operating results and special notes (Caution regarding forward-looking statements) Forward-looking statements in these materials are based on information available to management at the time this report was prepared and assumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number of reasons. For conditions as assumption for earnings forecast and cautionary statement regarding use of the forecast, please see "1. Results of Operations, (3) Qualitative information on consolidated performance forecast" on page 6. (How to obtain supplementary materials on quarterly financial results) Materials for the earnings presentation (Japanese and English) will be posted on TDnet and our website today (February 12, 2026). Index for Supplementary Information Results of Operations 2 Overview of consolidated business performance 2 Overview of financial condition 5 Explanation of the consolidated earnings forecast and other forward-looking statements 6 Quarterly Consolidated Financial Statements and Major Notes 8 Quarterly consolidated balance sheet 8 Quarterly consolidated statements of income and comprehensive income 10 Notes to quarterly consolidated financial statements 12 (Notes to going concern assumptions) 12 (Notes to significant change in shareholdersʼ equity) 12 (Notes to the quarterly consolidated statement of cash flows) 12 (Notes to segment information) 13 ‌1. Results of Operations ‌(1) Overview of consolidated business performance The following is an overview of consolidated business performance during the third quarter of the consolidated fiscal period under review. FY 2025/3 Q3 (April 1, 2024 - December 31, 2024) FY 2026/3 Q3 (April 1, 2025 - December 31, 2025) YoY Net sales Million yen 396,243 Million yen 445,475 Million yen 49,232 12.4％ Gross profit （Margin） 52,190 13.2％ 59,961 13.5％ 7,771 0.3pt 14.9％ - SG&A 34,134 40,511 6,377 18.7％ Operating income (Margin) 18,056 4.6% 19,449 4.4% 1,393 (0.2pt) 7.7% - Ordinary income 18,379 20,766 2,386 13.0% Profit before income taxes 18,462 31,317 12,855 69.6% Profit attributable to owners of parent 12,714 24,308 11,593 91.2% Exchange Rate (Average rate during the year period) Yen / US$ 152.57yen 148.74yen (3.83)yen - Net Sales In the electronic components business, inventory adjustments in the supply chain continued to ease, while the EMS* business performed well, centered on overseas production sites where capacity increase has been implemented. The information equipment business continued to record strong sales of PCs and security software for mobile devices. Sales of amusement equipment for both domestic and overseas markets remained robust in the others business. Furthermore, Kyoei Sangyo Co., Ltd. starts to contribute as a consolidated subsidiary as of Q2. As a result, net sales increased by 49,232 million yen year on year to 445,475 million yen. Note: Electronics Manufacturing Service: Provision of product development and manufacturing services on an outsourcing basis. Gross Profit In addition to overall sales growth, solid performance in relatively high-margin products and businesses increased the gross profit margin by 0.3 percentage points year on year, resulting in a year-on-year increase in gross profit of 7,771 million yen to 59,961 million yen. Operating income Selling, general and administrative expenses increased, driven by higher sales-related costs associated with overall sales growth, and increased fixed costs arising from a corporate acquisition, among other factors. Nevertheless, higher gross profit more than offset these increases, resulting in operating income rising by 1,393 million yen year on year to 19,449 million yen. Ordinary income Non-operating income and expenses improved, reflecting a decrease in foreign exchange losses and other factors, and ordinary income increased by 2,386 million yen year on year to 20,766 million yen. Profit before income taxes Due to the recognition of extraordinary income, including a 7,594 million yen gain on bargain purchase from a corporate acquisition and 1,636 million yen in gains on sales of investment securities, profit before income taxes increased by 12,855 million yen year on year to 31,317 million yen. Profit attributable to owners of parent Profit attributable to owners of parent increased by 11,593 million yen year on year to 24,308 million yen, due to the recognition of income taxes - current. As noted above, net sales and income at all levels of profit, through profit attributable to owners of parent, increased year on year, contributing to sustained strong performance in the first half of the fiscal year. Business segment performance The following is a summary of business results by segment for the third quarter of the consolidated fiscal period under review. FY 2025/3 Q3 (April 1, 2024 - December 31, 2024) FY 2026/3 Q3 (April 1, 2025 - December 31, 2025) YoY Electronic Net sales Million yen 346,212 Million yen 383,892 Million yen 37,679 10.9％ components Segment income 13,568 13,768 199 1.5％ Information Net sales 26,953 33,652 6,698 24.9％ equipment Segment income 1,953 2,499 546 28.0％ Software Net sales 2,070 2,525 455 22.0％ Segment income 308 233 (74) (24.2％) Others Net sales 21,006 25,404 4,398 20.9％ Segment income 2,097 2,747 650 31.0％ Total Net sales 396,243 445,475 49,232 12.4％ Segment income 18,056 19,449 1,393 7.7％ Note: "Segment income" shows unadjusted figures for each business segment and adjusted figures for the total. (a) Electronic components (Development, manufacture and sale of semiconductors, general electronic components and other products, the electronics manufacturing service EMS, and other activities) While inventory adjustments in the supply chain continued to ease, the components sales business faced uneven conditions, as the supply-demand balance tightened from the latter half of the previous year for certain products, including automotive semiconductors and commodity memory products. Meanwhile, the consolidation of Kyoei Sangyo led the business to maintain overall growth. In the EMS business, aggressive capital expenditures focused on overseas sites proved effective, and sales of products, including medical and air-conditioning equipment, performed well. As a result, net sales increased 10.9% year on year to 383,892 million yen and segment income increased 1.5% year on year to 13,768 million yen.

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