Kanematsu Corporation TSE:8020
Kanematsu : Supplementary Material First Quarter Results for FY2026 TSE
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Supplementary Material
First Quarter Results for FY2026
Disclaimer:
The forward-looking statements, including results forecasts, provided in this document (and its appendix) are based on information obtained by Kanematsu Corporation (the Company) and certain reasonable assumptions made by the Company. The Company does not guarantee their achievement, and actual results may differ from forecasts due to various factors. This information is subject to change without prior notice, and users are advised to utilize this document alongside information acquired through other sources and exercise their own discretion. The Company bears no liability or responsibility for any loss or damage resulting from the use of this material Additionally, as the figures presented are rounded off to the nearest 1 billion yen, the total may not precisely match the sum of each item.
Although profit attributable to owners of the parent for the quarter declined compared to the strong performance in the same period of the previous year, progress toward the full-year forecast remained steady at 23%.
Progress toward our full-year profit target of ¥30.0 billion is generally steady and aligned with our plan.
(Unit: JPY Bn) | FY2026 1Q | FY2026 1Q | YoY | Growth |
Revenue | 251.0 | 251.1 | +0.1 | +0% |
Operating profit | 11.8 | 10.6 | (1.1) | (10%) |
Net profit1) | 7.5 | 7.0 | (0.5) | (6%) |
Operating cash flows (adjusted)2) | 6.1 | (1.4) | (7.5) | |
CF from investing activities | (2.6) | (1.9) | +0.6 | |
End of Mar 2025 | End of June 2025 | YoY | ||
Net D/E ratio3) | 0.69x | 0.68x | (0.01x) | |
Equity ratio4) | 25.2% | 27.8% | 2.6% | |
Earnings Results
Forecast
(Unit: JPY Bn) | FY2026 Annual | 1Q Progress |
Revenue | 1,100.0 | 23% |
Operating profit | 50.0 | 21% |
Net profit1) | 30.0 | 23% |
Annual dividend per share 115 yen Dividend payout ratio 32.0%
Net profit = Profit attributable to owners of the parent
Operating cash flows (adjusted) ＝ Operating cash flows ± Change in working capital - Repayment of lease liabilities
Net D/E Ratio ＝ Net interest-bearing debt ÷ total equity attributable to owners of the parent
Equity ratio ＝ Shareholders' equity ÷ total assets
Earnings Summary
Earnings Results Progress
(Unit: JPY Bn)
FY2025 1Q
FY2026
(Unit: JPY Bn) | FY2026 Annual Forecast | Progress |
Revenue | 1,100.0 | 23% |
Operating profit | 50.0 | 21% |
Profit before tax | 46.0 | 23% |
Profit attributable to owners of the parent | 30.0 | 23% |
1Q YoY Growth
Revenue 251.0 | 251.1 +0.1 | +0% |
Gross profit | 35.7 | 39.3 | +3.6 | +10% |
Selling, general and administrative expenses | (27.6) | (29.1) | (1.5) | - |
Other income (expenses) | 3.7 | 0.4 | (3.3) | (88%) |
Revenue increased in the Foods, Meat & Grain segment and the Electronics & Devices segment, but declined in the Steel, Materials & Plant segment and the Motor Vehicles & Aerospace segment, resulting in overall revenue remaining largely unchanged. |
While gross profit increased, operating profit decreased by ¥1.1 billion, primarily due to higher selling, general and administrative expenses and an increase in other expenses, including foreign exchange losses. |
Due to a decline in operating profit, profit before tax decreased by ¥0.8 billion. |
Due to a decline in profit before tax, profit attributable to owners of the parent decreased by ¥0.5 billion. See page 4 for more details. |
Operating profit | 11.8 | 10.6 | (1.1) | (10%) | |
Interest income | |||||
(expenses) | (1.2) | (1.1) | +0.2 | - | |
Dividend income | 0.8 | 0.7 | (0.1) | (10%) | |
Other finance income | |||||
(costs) | 0.1 | (0.1) | (0.2) | - | |
Dividend payout ratio 32.0%
(Unit: JPY Bn)
Net Profit Forecast
23％1Q 7.0
2Q-4Q
23.0
Profit before tax 11.4 | 10.6 (0.8) | (7%) |
Profit attributable to owners of the parent 7.5 | 7.0 (0.5) | (6%) |
Finance income (costs) | (0.3) | (0.4) | (0.1) | - |
Share of Profit (Loss) of | ||||
Investments Accounted for Using the Equity Method | (0.0) | 0.4 | +0.5 | - |
Income tax expense | (3.8) | (3.4) | +0.4 | - |
Profit for the quarter | 7.6 | 7.2 | (0.4) | (5%) |
Annual 30.0 1Q progress
Profit and Loss
(Unit: JPY Bn) ICT Solution | FY2025 1Q | FY2026 1Q 20.7 | YoY +4.0 | Growth +24% | FY2026 Forecast 105.0 | Progress 20% | |
Revenue | 16.7 | ||||||
Operating Profit | 1.4 | 2.3 | +0.9 | +64% | 15.0 | 15% | |
Net Profit1) | 0.9 | 1.5 | +0.6 | +60% | 10.5 | 14% | |
Electronics & Devices | |||||||
Revenue | 60.9 | 65.6 | +4.7 | +8% | 275.0 | 24% | |
Operating profit | 2.8 | 3.8 | +1.1 | +38% | 13.7 | 28% | |
Net profit | 1.9 | 2.7 | +0.8 | +42% | 8.9 | 30% | |
Foods, Meat & Grain | |||||||
Revenue | 87.7 | 94.6 | +7.0 | +8% | 385.0 | 25% | |
Operating profit | 3.7 | 1.7 | (2.0) | (55%) | 8.1 | 21% | |
Net profit | 2.1 | 1.0 | (1.1) | (53%) | 3.5 | 27% | |
Steel, Materials & Plant | |||||||
Revenue | 49.8 | 40.2 | (9.6) | (19%) | 200.0 | 20% | |
Operating profit | 2.1 | 1.6 | (0.6) | (27%) | 7.5 | 21% | |
Net profit | 1.3 | 1.1 | (0.2) | (17%) | 3.8 | 28% | |
Motor Vehicles & Aerospace | |||||||
Revenue | 35.4 | 29.5 | (5.9) | (17%) | 130.0 | 23% | |
Operating profit | 1.7 | 1.4 | (0.4) | (21%) | 5.8 | 24% | |
Net profit | 1.4 | 0.9 | (0.5) | (34%) | 3.4 | 26% | |
Other (Including adjustment) | |||||||
Revenue | 0.5 | 0.5 | (0.0) | - | 5.0 | - | |
Operating profit | 0.0 | (0.1) | (0.1) | - | (0.1) | - | |
Net profit | (0.1) | (0.2) | (0.0) | - | (0.1) | - | |
Total | |||||||
Revenue | 251.0 | 251.1 | +0.1 | +0% | 1,100.0 | 23% | |
Operating profit | 11.8 | 10.6 | (1.1) | (10%) | 50.0 | 21% | |
Net profit | 7.5 | 7.0 | (0.5) | (6%) | 30.0 | 23% | |
(Unit: JPY Bn)
Revenue
+7.0
+4.7
251.0
+4.0
(9.6)
251.1
(5.9) (0.0)
FY2025 1Q
ICT Solution Electronics & Devices
Foods, Meat & Grain
Steel, Materials & Plant
Motor Vehicles & Aerospace
Other FY2026 1Q
FY2025 | ICT Solution | Electronics | Foods, Meat | Steel, Materials | Motor Vehicles | Other | FY2026 |
1Q | & Devices | & Grain | & Plant | & Aerospace | 1Q |
Net profit = Profit attributable to owners of the parent
(Unit: JPY Bn)
+0.9
11.8
(2.0)
(0.6)
10.6
(0.4)
(0.1)
+1.1
Operating profit
Segment Information
Profit attributable to owners of the parent
ICT Solution ■ Electronics & Devices
Foods, Meat & Grain ■ Steel, Materials & Plant
Motor Vehicles & Aerospace ■ Other (Including adjustment)
(Unit: JPY Bn)
0.9 ＋0.6
1.5
1.9
+0.82.7
Primary factors contributing to the year-on-year changes ICT Solution Increased by ¥0.6 billionProfit increased as a result of robust demand for network and system construction projects in the manufacturing and distribution industries, as well as the expansion of service businesses and growing security needs.
- Mobile: Profit grew due to an increase in sales volume resulting from the expansion of sales channels, in addition to the strong performance of the enterprise business.
-
Semiconductor Parts & Equipment Business:
Profit increased, driven by a recovery in shipments of semiconductor manufacturing equipment compared to the previous fiscal year.
- Meat Products: Sales were sluggish and profit declined due to higher costs resulting from elevated overseas market prices and weak domestic market conditions.
- Grain, Oilseeds & Feedstuff: Although imported rice and soybeans performed well, profit declined due to a year-on-year decrease in fishmeal, fish oil, and corn, which had performed strongly in the previous year.
(0.1)
2.1
1.3
1.4
FY2025
1Q
(1.1) (0.2) (0.5)1.0
1.1
0.9
FY2026
1Q
(0.2)
Steel, Materials & Plant Decreased by ¥0.2 billion - Steel: Profit increased primarily due to gains associated with the divestment of domestic steel subsidiaries.
- Environment-related: Profit decreased due to the absence of gains on the sale of idle assets that were recorded in the same period of the previous year.
- Plant: Profit decreased due to a reduction in the number of ODA (Official Development Assistance) projects compared to the same period of the previous year.
- Aerospace: Profit decreased year on year due to factors such as a decline in parts orders from overseas clients.
Net Profit Breakdown