Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2025(Under Japanese GAAP)

February 13, 2026

Company name: Kyosan Electric Manufacturing Co.,Ltd. Listing: Tokyo Stock Exchange

Securities code: 6742

URL: https://www.kyosan.co.jp

Representative: Ryoji Kunisawa Representative Director, President

Inquiries: Aki Sato Financial Management Headquarters

General Manager of Finance & Accounting Dept.

Telephone: +81-45-503-8106

Scheduled date to commence dividend payments: -

Preparation of supplementary material on financial results: None Holding of financial results briefing: None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the nine months ended December 31, 2025 (from April 1, 2025 to December 31, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Nine months ended December 31, 2025 December 31, 2024	Millions of yen 49,373 46,240	% 6.8 19.2	Millions of yen (771) (433)	% - -	Millions of yen (96) 119	% - -	Millions of yen 262 277	% (5.5) -

      Note: Comprehensive income	For the nine months ended December 31, 2025:	¥	1,128 million [	-%]
      	For the nine months ended December 31, 2024:	¥	(1,069) million [	-%]

      	Basic earnings per share	Diluted earnings per share
      Nine months ended	Yen	Yen
      December 31, 2025	4.23	-
      December 31, 2024	4.43	-

   2. Consolidated financial position

   	Total assets	Net assets	Equity-to-asset ratio
   As of December 31, 2025 March 31, 2025	Millions of yen 127,517 126,005	Millions of yen 50,901 51,711	% 39.9 41.0

   Reference: Equity

   As of December 31, 2025:	¥	50,901 million
   As of March 31, 2025:	¥	51,711 million

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended March 31, 2025	-	5.00	-	18.00	23.00
   Fiscal year ending March 31, 2026	-	5.00	-
   Fiscal year ending March 31, 2026 (Forecast)				18.00	23.00

   Note: Revisions to the forecast of cash dividends most recently announced: None Note: Breakdown of the third quarter dividend for the fiscal year ending March 31, 2026 :

   Commemorative dividend - yen

   Special dividend - yen

3. Consolidated financial result forecasts for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

1. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes

2. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

3. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of December 31, 2025	62,844,251 shares
      As of March 31, 2025	62,844,251 shares

   2. Number of treasury shares at the end of the period

      As of December 31, 2025	1,121,879 shares
      As of March 31, 2025	127,015 shares

   3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes(voluntary)

• Proper use of earnings forecasts, and other special matters

The forecasts and other forward-looking statements in this document are based on information currently available to the Company and certain assumptions deemed to be reasonable.

Actual results may differ materially from these forecasts due to various factors.

‌Quarterly Consolidated Financial Statements (1)Quarterly Consolidated Balance Sheet

(Millions of yen)

As of March 31, 2025

As of December 31, 2025

Assets

Current assets

Provision for bonuses for directors (and other officers)

250

89

(Millions of yen) As of March 31, 2025 As of December 31, 2025

Liabilities

Current liabilities

Notes and accounts payable - trade 9,410 7,033

Electronically recorded obligations - operating 3,021 3,026

Contract liabilities 13,786 12,553

Current portion of long-term borrowings 5,500 2,700

Short-term borrowings 15,700 27,400

Income taxes payable 2,482 680

Provision for product warranties 95 245

Provision for loss on orders received 1,223 1,409

Total current liabilities 58,437 60,179

Other 6,967 5,040

Long-term borrowings 11,800 11,600

Non-current liabilities

Asset retirement obligations 123 126

Retirement benefit liability 3,350 4,065

Provision for share-based payments - 78

Provision for product warranties 31 28

Other 543 528

Deferred tax liabilities 6 8

Total liabilities 74,293 76,615

Total non-current liabilities 15,855 16,436

Shareholders' equity

Net assets

Capital surplus 4,625 4,625

Share capital 6,270 6,270

Treasury shares (45) (545)

Retained earnings 36,400 35,224

Accumulated other comprehensive income

Total shareholders' equity 47,251 45,575

Foreign currency translation adjustment 614 799

Valuation difference on available-for-sale securities

3,152 3,970

Total accumulated other comprehensive income 4,460 5,326

Remeasurements of defined benefit plans 693 556

Total net assets 51,711 50,901

Total liabilities and net assets 126,005 127,517

1. Quarterly Consolidated Statements of Income and Comprehensive Income

   Quarterly Consolidated Statement of Income For the nine months ended December 31, 2025
   		(Millions of yen)
   	For the nine months	For the nine months
   	ended December 31, 2024	ended December 31, 2025
   Net sales	46,240	49,373
   Cost of sales	37,560	40,321
   Gross profit	8,680	9,052
   Selling, general and administrative expenses
   Salaries and allowances	2,605	2,695
   Bonuses	808	933
   Provision for bonuses for directors (and other officers)	56	115
   Provision for share-based payments	-	78
   Retirement benefit expenses	124	114
   Depreciation	259	252
   Packing and delivery expenses	872	871
   Other	4,387	4,762
   Total selling, general and administrative expenses	9,113	9,823
   Operating loss	(433)	(771)
   Non-operating income
   Dividend income	177	193
   Insurance claim income	172	189
   Share of profit of entities accounted for using equity method	243	291
   Foreign exchange gains	79	192
   Other	147	174
   Total non-operating income	819	1,040
   Non-operating expenses
   Interest expenses	176	271
   Financing expenses	66	62
   Other	22	31
   Total non-operating expenses	265	366
   Ordinary profit (loss)	119	(96)
   Extraordinary income
   Gain on sale of non-current assets	0	2
   Gain on sale of investment securities	175	689
   Total extraordinary income	175	692
   Extraordinary losses
   Loss on sale and retirement of non-current assets	9	8
   Loss on sale of investment securities	2	-
   Total extraordinary losses	11	8
   Profit before income taxes	283	586
   Income taxes	5	324
   Profit	277	262
   Profit attributable to non-controlling interests	-	-
   Profit attributable to owners of parent	277	262

   Quarterly Consolidated Statement of Comprehensive Income
   For the nine months ended December 31, 2025
   		(Millions of yen)
   	For the nine months	For the nine months
   	ended December 31, 2024	ended December 31, 2025
   Profit	277	262
   Other comprehensive income
   Valuation difference on available-for-sale securities	(1,357)	817
   Foreign currency translation adjustment	65	155
   Remeasurements of defined benefit plans, net of tax	(92)	(137)
   Share of other comprehensive income of entities accounted for using equity method	37	29
   Total other comprehensive income	(1,347)	865
   Comprehensive income	(1,069)	1,128
   Comprehensive income attributable to

   Comprehensive income attributable to owners of parent

   (1,069) 1,128

   Comprehensive income attributable to non-controlling interests

   -

   -

2. Quarterly Consolidated Statement of Cash Flows

Cash flows from operating activities

For the nine months ended December 31, 2024

(Millions of yen)

Share of loss (profit) of entities accounted for using equity method

(243)

(291)

For the nine months ended December 31, 2025

Depreciation 1,412 1,401

Profit before income taxes 283 586

Increase (decrease) in retirement benefit liability (66) 194

Interest and dividend income (242) (249)

Loss (gain) on sale of investment securities (173) (689)

Decrease (increase) in trade receivables 5,236 10,543

Interest expenses 176 271

Increase (decrease) in trade payables (2,533) (2,419)

Decrease (increase) in inventories (9,797) (7,320)

Other, net (2,421) (4,679)

Increase (decrease) in contract liabilities 1,667 (1,234)

Interest and dividends received 256 275

Subtotal (6,699) (3,886)

Income taxes paid (1,883) (2,100)

Interest paid (180) (285)

Cash flows from investing activities

Net cash provided by (used in) operating activities (8,508) (5,997)

Proceeds from withdrawal of time deposits 306 37

Payments into time deposits (1,328) (1,069)

Proceeds from sale of investment securities 265 1,114

Purchase of investment securities (14) (17)

Proceeds from sale of property, plant and equipment 2 0

Purchase of property, plant and equipment (620) (536)

Other, net 1 (979)

Purchase of intangible assets (28) (81)

Cash flows from financing activities

Net cash provided by (used in) investing activities (1,414) (1,531)

Proceeds from long-term borrowings 10,000 2,000

Net increase (decrease) in short-term borrowings 4,800 11,700

Dividends paid (1,254) (1,438)

Repayments of long-term borrowings (7,000) (5,000)

Net cash provided by (used in) financing activities 6,405 6,588

Other, net (139) (673)

Net increase (decrease) in cash and cash equivalents (3,492) (894)

Effect of exchange rate change on cash and cash equivalents

25 45

Cash and cash equivalents at beginning of period 9,183 8,132

Cash and cash equivalents at end of period 5,691 7,238