Meidensha : Financial Result for FY2025 Q2

FOR IMMEDIATE RELEASE

Company name : MEIDENSHA CORPORATION

Listing : Tokyo Stock Exchange / Nagoya Stock Exchange

Securities code : 6508

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

Representative : (Name) Akio Inoue (Title) Representative Director, President and Executive Officer

Inquiries : (Name) Ayako Sasamoto

(Title) General Manager, Corporate Communication & PR Promotion Division

Telephone : +81-3-6420-8100

Scheduled date to file semi-annual securities report : November 7, 2025 Scheduled date to commence dividend payments : December 1, 2025 Preparation of supplementary material on financial results : Yes

Holding of financial results briefing : Yes

(for analysts and institutional investors)

(Note: Amounts less than one million yen are rounded down)

1. Consolidated Financial Results for the Six Months Ended September 30, 2025

   (April 1, 2025 to September 30, 2025)

   1. Consolidated Operating Results (Cumulative)

      (Percentage figures represent year-on-year changes)

      	Net sales		Operating income		Ordinary income		Net income attributable to owners of the parent
      Six months ended September 30, 2025 Six months ended September 30, 2024	Millions of yen	%	Millions of yen 2,792 1,909	%	Millions of yen	%	Millions of yen	%
      	131,142 120,099	9.2 0.9		46.3 -	3,174 1,743	82.1 -	2,026 2,094	(3.2) -

      (Note) Comprehensive income:

      Six months ended September 30, 2025 7,866 million yen (- %) Six months ended September 30, 2024 -790 million yen (- %)

      	Basic net income per share	Diluted net income per share
      	Yen	Yen - -
      Six months ended September 30, 2025	44.68
      Six months ended September 30, 2024	46.17

   2. Consolidated Financial Position

      	Total assets	Total equity	Equity ratio
      	Millions of yen	Millions of yen	%
      As of September 30, 2025	328,991	145,982	43.3
      As of March 31, 2025	341,347	142,212	40.7

      (Reference) Equity:

      As of September 30, 2025 142,532 million yen

      As of March 31, 2025 138,777 million yen

2. Dividend Status

   	Dividend per share
   	1Q-end	2Q-end	3Q-end	4Q-end	Total
   Fiscal year ended March 31, 2025 Fiscal year ending March 31, 2026	Yen	Yen	Yen	Yen	Yen
   	- -	35.00 47.00	-	88.00	123.00
   Fiscal year ending March 31, 2026 (Forecast)			-	-	-

   (Note) Revisions to the dividend forecasts announced most recently: None

   The forecast for dividends for the fiscal year ending March 31, 2026 are yet to be determined at the present time.

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2026 (April 1, 2025 to March 31, 2026)

(Percentage figures represent year-on-year changes)

(Note) Revisions to the earnings forecasts announced most recently: Yes

* Notes

1. Significant changes in the scope of consolidation during the period: None Newly added: - companies

   Excluded: - companies

2. Application of special accounting treatment for the preparation of interim consolidated financial statements: None

3. Changes in accounting policies, changes in accounting estimates, and restatements

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

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

   3. Changes in accounting estimates: None

   4. Restatements: None

4. Number of shares issued (common stock)

   1. Number of shares issued at the end of the period (including treasury stock) As of September 30, 2025 45,527,540 shares

      As of March 31, 2025 45,527,540 shares

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

      As of September 30, 2025 162,779 shares

      As of March 31, 2025 162,152 shares

   3. Average number of shares during the period (interim period)

Six months ended September 30, 2025 45,365,053 shares

Six months ended September 30, 2024 45,366,364 shares

• This report is not subject to audits by certified public accountants or an audit firm.

• Description concerning the appropriate use of earnings forecasts and other remarks (Cautionary statement regarding forward-looking statements)

The forward-looking statements, including results forecasts, contained in this document are based on information currently available to the Company and certain assumptions that the Company believes are reasonable, and the Company does not make any assurances regarding the achievement thereof. In addition, actual results, etc. may differ significantly from the forecast figures due to various factors. For information on the assumptions underlying the results forecasts and other important information regarding the use of forecasts, please refer to "1. Operating Results (3) Forecast of Consolidated Results" on page 3 of the attached materials.

(How to obtain supplementary materials on interim financial results)

Supplementary materials on interim financial results are disclosed on TDnet on the same day.

Table of Contents

1. Operating Results 5

   1. Analysis of Operating Results 5

   2. Analysis of Financial Condition 6

   3. Forecast of Consolidated Results 6

2. Consolidated Financial Statements and Notes 8

   1. Consolidated Balance Sheets 8

   2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 10

      Consolidated Statements of Income 10

      Consolidated Statements of Comprehensive Income 11

   3. Consolidated Statements of Cash Flows 12

   4. Notes on Consolidated Financial Statements 13

(Notes on the Going-concern Assumption) 13

(Notes on Significant Changes in the Amount of Shareholders' Equity) 13

(Notes on Segment and Other Information) 14

1. ‌Operating Results
   1. ‌Analysis of Operating Results

      In the six months ended September 30, 2025, the management environment surrounding the Company showed steady demand for heavy electrical products and systems against a backdrop of expansion of investment in power infrastructure and renewable energy in Japan and overseas. It is highly compatible with the government's growth investments and next-generation energy policies, and an increase in new projects is expected. Meanwhile, although temporary risks exist due to labor shortages, construction delays, and the impact of exchange rates and tariffs, strong movements can be seen in areas where the Company's strengths can be leveraged, such as infrastructure investment in Japan and margin improvement driven by demand for AI and DX.

      The consolidated results for the six months under review are provided below.

      Among the Meiden Group's businesses, sales of electrical equipment to electric power companies and government agencies and of water purification and sewerage treatment equipment to local government authorities tend to be concentrated at the end of fiscal year. For this reason, net sales in the first six months every fiscal year tend to be low in comparison with the full-year figure.

      (Unit: millions of yen)

      	Six months ended September 30, 2024 Result	Six months ended September 30, 2025 Result	Change	Change (%)
      Net sales	120,099	131,142	11,042	9.2
      Operating income (loss)	1,909	2,792	883	46.3
      Ordinary income (loss)	1,743	3,174	1,431	82.1
      Net income (loss) attributable to owners of the parent	2,094	2,026	(68)	(3.2)

      The results for each business segment are presented below, with sales figures including inter-segment sales.

      1. Power Infrastructure Business

         In the Power T&D business mainly operating overseas, strong demand continued in the North American

         market and the German local subsidiary. Furthermore, in the Power & Energy business mainly operating in Japan, implementation of efficient production to meet demand resulted in increases in both sales and income in both businesses. As a result, net sales in the segment increased 23.3% year on year to ¥43,371 million, and operating income improved by ¥1,141 million to ¥3,725 million.

      2. Public, Industrial & Commercial Sector Business

         The Social Infrastructure business saw an increase in both sales and income, due to an increase in the number of projects being undertaken against a backdrop of strong orders. In addition, although the Water Infrastructure business saw an increase in sales based on progress of construction, income decreased due to a deterioration in the income composition of projects. Meanwhile, in the Railways business, sales and income decreased due to a reactionary decline in large projects. As a result, net sales in the segment increased 3.1% year on year to ¥38,429 million, and operating loss deteriorated by ¥579 million to ¥1,877 million.

      3. Mobility & Electrical Components Business

         In the Motor Drive Solutions business, income decreased slightly due to reduced sales resulting from a phase of market adjustments and the impact of customer inventory excesses. In the EV business, both sales and income declined, mainly due to lower sales volume for models for which our products were delivered. Meanwhile, the Electronics Products business, which saw sales exceed the previous fiscal year despite a delayed recovery in demand, and the Mobility T&S business, which entered a phase of increased sales from its abundant existing orders, both sales and income increased. As a result, net sales in the segment increased 1.3% year on year to ¥33,068 million, and operating income improved by

         ¥388 million to ¥12 million.

      4. Field Service Engineering Business

         In addition to the expansion of demand for maintenance services for facilities, generally steady progress in existing orders resulted in net sales increasing by 11.6% to ¥18,620 million and operating income improving by ¥753 million to ¥2,078 million.

      5. Real Estate Business

         Net sales in the segment increased 0.0% year on year to ¥1,616 million, and operating income improved by ¥20 million to ¥756 million.

      6. Other

      In businesses not included in reportable segments, while net sales increased by 8.3% year on year to

      ¥4,190 million, operating loss deteriorated by ¥55 million to ¥16 million.

   2. ‌Analysis of Financial Condition

      Total assets at September 30, 2025 amounted to ¥328,991 million, a decrease of ¥12,355 million from the end of the previous fiscal year (March 31, 2025).

      Current assets declined by ¥18,118 million to ¥198,997 million, as collection of notes and accounts receivable-trade, and contract assets recorded at the end of the previous fiscal year progressed.

      Fixed assets increased by ¥5,763 million to ¥129,994 million due to an increase in investment securities caused by rising market prices of listed shares held by the Company.

      Total liabilities were ¥183,008 million, a decrease of ¥16,125 million from the end of the previous fiscal year, attributable to a decrease in notes and accounts payable-trade and a decrease in commercial paper.

      Total net assets rose ¥3,770 million to ¥145,982 million due to an increase in unrealized gains on available-for-sale securities.

      As a result, the equity ratio came to 43.3% as of September 30, 2025, compared with 40.7% at the end of the previous fiscal year.

   3. ‌Forecast of Consolidated Results

   With regard to the forecast of results for the year ending March 31, 2026, net sales are expected to decrease from the previously announcement forecast, mainly due to a decline in demand in the EV business and delays in the progress of domestic infrastructure projects. Meanwhile, operating income, ordinary income and net income attributable to owners of the parent are expected to be higher than the previously announced forecast due to improvements in performance being expected to continue against the backdrop of robust demand in the Field Service Engineering business and Power

   Infrastructure business.

   The current management forecast for consolidated financial results for the fiscal year ending March 31, 2026 is as follows.

   Revision of consolidated results forecast figures for the year ending March 31, 2026 (April 1, 2025 to March 31, 2026)

   	Net sales (millions of yen)	Operating income (millions of yen)	Ordinary income (millions of yen)	Net income attributable to owners of the parent (millions of yen)	Net income per share (yen)
   Previous forecast (A)	335,000	20,000	20,000	14,000	308.60
   Revised forecast (B)	330,000	22,500	22,500	16,500	363.72
   Change (B-A)	(5,000)	2,500	2,500	2,500	-

   Change (%)	(1.5)	12.5	12.5	17.9	-
   (Reference) Results for the previous fiscal year (Fiscal year ended March 31, 2025)	301,101	21,512	21,192	18,487	407.51

2. ‌Consolidated Financial Statements and Notes

1. ‌Consolidated Balance Sheets

   As of March 31,

   As of September

   Assets

   Current assets

   2025 30, 2025

   millions of yen millions of yen

   Cash and time deposits	30,679	29,231
   Notes and accounts receivable-trade, and contract assets	104,591	77,401
   Electronically recorded monetary claims- operating	8,046	5,951
   Merchandise and finished goods	8,730	8,926
   Work in process	46,039	54,225
   Raw materials and supplies	13,041	12,685
   Other current assets	6,508	11,074
   Allowance for doubtful accounts	(519)	(498)
   Total current assets	217,116	198,997
   Fixed assets
   Property, plant and equipment
   Buildings and structures, net	38,339	37,968
   Machinery, equipment and vehicles, net	14,470	13,838
   Land	12,542	12,548
   Construction in progress	4,463	6,189
   Other property, plant and equipment, net	5,245	5,449
   Total property, plant and equipment	75,061	75,995
   Intangible assets
   Software	4,692	4,529
   Goodwill	1,428	1,075
   Other	571	553
   Total intangible assets	6,693	6,159
   Investments and other assets
   Investment securities	23,498	30,193
   Long-term loans receivable	33	33
   Deferred tax assets	16,467	14,366
   Other assets	2,504	3,274
   Allowance for doubtful accounts	(27)	(27)
   Total investments and other assets	42,476	47,839
   Total fixed assets	124,230	129,994
   Total assets	341,347	328,991

   As of March 31, 2025

   As of September 30, 2025

   millions of yen millions of yen

   Liabilities

   Current liabilities
   Notes and accounts payable-trade	34,504	28,216
   Electronically recorded obligations-operating	2,536	2,867
   Short-term borrowings	11,095	11,987
   Commercial paper	6,000	-
   Accounts payable-other	5,141	3,815
   Accrued income taxes	4,768	1,903
   Contract liabilities	21,559	28,354
   Accrued bonuses for employees	9,992	9,537
   Provision for product warranties	1,481	1,486
   Provision for loss on orders	588	515
   Other current liabilities	20,401	15,725
   Total current liabilities	118,069	104,408
   Long-term liabilities
   Long-term debt	27,470	24,544
   Net defined benefit liability	48,579	49,020
   Provision for environmental measures	79	52
   Other long-term liabilities	4,935	4,982
   Total long-term liabilities	81,064	78,600
   Total liabilities	199,134	183,008
   Net assets Shareholders' equity
   Common stock	17,070	17,070
   Capital surplus	10,226	10,226
   Retained earnings	93,273	91,307
   Treasury stock	(202)	(205)
   Total shareholders' equity	120,367	118,399
   Accumulated other comprehensive income
   Unrealized gains on available-for-sale securities	11,081	15,813
   Foreign currency translation adjustment	7,441	8,330
   Remeasurements of defined benefit plans	(112)	(10)
   Total accumulated other comprehensive income	18,409	24,133
   Non-controlling interests	3,435	3,450
   Total net assets	142,212	145,982
   Total liabilities and net assets	341,347	328,991

2. ‌Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ‌Consolidated Statements of Income

   Six months ended Six months ended

   September 30, September 30,

   2024 2025

   	millions of yen	millions of yen
   Net sales	120,099	131,142
   Cost of sales	89,434	96,836
   Gross profit	30,665	34,305
   Selling, general and administrative expenses	28,756	31,513
   Operating income (loss)	1,909	2,792
   Non-operating income
   Interest income	135	154
   Dividend income	488	544
   Rent income	42	42
   Other	419	430
   Total non-operating income	1,086	1,171
   Non-operating expenses
   Interest expenses	484	450
   Loss on foreign exchange	407	8
   Seconded employee expenses	39	37
   Other	320	291
   Total non-operating expenses	1,252	789
   Ordinary income (loss)	1,743	3,174
   Extraordinary income
   Gain on sales of investment securities	1,274	14
   Total extraordinary income	1,274	14
   Extraordinary loss
   Loss on valuation of shares of subsidiaries and associates	-	218
   Loss on liquidation of subsidiaries and associates	18	8
   Loss on disaster	148	-
   Total extraordinary loss	166	226
   Income (loss) before income taxes	2,850	2,962
   Income taxes
   Current	1,071	950
   Deferred	(335)	(97)
   Total income taxes	735	853
   Net income (loss)	2,115	2,109
   Net income (loss) attributable to the non-controlling interests	20	82
   Net income (loss) attributable to owners of the parent	2,094	2,026

   ‌Consolidated Statements of Comprehensive Income

   	Six months ended September 30,	Six months ended September 30,
   	2024	2025
   	millions of yen	millions of yen
   Net income (loss)	2,115	2,109
   Other comprehensive income
   Unrealized gains (losses) on available-for-sale securities	(2,669)	4,732
   Foreign currency translation adjustment	(314)	921
   Remeasurements of defined benefit plans	78	102
   Total other comprehensive income	(2,905)	5,756
   Comprehensive income	(790)	7,866
   Comprehensive income attributable to:
   Owners of the parent	(834)	7,750
   Non-controlling interests	44	115

3. ‌Consolidated Statements of Cash Flows

   Six months ended

   September 30,

   Six months ended

   September 30,

   Cash flows from operating activities

   2024 2025

   millions of yen millions of yen

   Income (loss) before income taxes	2,850	2,962
   Depreciation and amortization	4,983	5,165
   Amortization of goodwill	348	315
   Increase (decrease) in provisions	(380)	(623)
   Increase (decrease) in net defined benefit liability	917	580
   Interest and dividend income	(623)	(698)
   Interest expenses	484	450
   Loss (gain) on sales of investment securities	(1,274)	(14)
   Loss on valuation of shares of subsidiaries and associates	-	218
   Decrease (increase) in trade receivables and contract assets	40,111	36,386
   Decrease (increase) in inventories	(13,972)	(7,620)
   Increase (decrease) in trade payables	(7,230)	(9,180)
   Other	(3,807)	(5,490)
   Sub total	22,406	22,450
   Interest and dividends received	634	707
   Interest expenses paid	(468)	(451)
   Proceeds from insurance income	439	-
   Payments for fire losses	(25)	-
   Income taxes paid	(2,465)	(4,191)
   Net cash provided by (used in) operating activities	20,520	18,515
   Cash flows from investing activities
   Purchase of property, plant and equipment, and intangible assets	(4,729)	(6,866)
   Proceeds from sales of investment securities	1,422	18
   Other	519	(1,780)
   Net cash provided by (used in) investing activities	(2,787)	(8,628)
   Cash flows from financing activities
   Net increase (decrease) in short-term borrowings	(1,274)	1,373
   Increase (decrease) in commercial paper	(4,000)	(6,000)
   Repayment of long-term debt	(39)	(3,451)
   Redemption of bonds	(6,000)	-
   Cash dividends paid	(2,264)	(3,983)
   Cash dividends paid to non-controlling interests	(50)	(100)
   Other	(276)	(338)
   Net cash provided by (used in) financing activities	(13,905)	(12,500)
   Effect of exchange rate on cash and cash equivalents	(44)	575
   Net increase (decrease) in cash and cash equivalents	3,782	(2,038)
   Cash and cash equivalents at beginning of term	17,224	29,091
   Cash and cash equivalents at end of term	21,006	27,052

4. ‌Notes on Consolidated Financial Statements

‌(Notes on the Going-concern Assumption)

Not applicable

‌(Notes on Significant Changes in the Amount of Shareholders' Equity) Not applicable

‌(Notes on Segment and Other Information)

1. Six months ended September 30, 2024 (April 1, 2024 to September 30, 2024)

   Net sales and income/loss by reportable segment

   (Millions of yen)

   	Reportable segment						Other (Note1)	Total	Adjustments (Note 2)	Amounts on consolidated statements of income (Note3)
   	Power Infrastructure	Public, Industrial & Commercial Sector	Mobility & Electrical Components	Field Service Engineering	Real Estate	Sub-total
   Net sales
   Sales to outside customers	34,830	34,357	32,008	15,664	1,597	118,458	1,640	120,099	-	120,099
   Inter-segment sales and transfers	343	2,931	634	1,015	18	4,943	2,228	7,172	(7,172)	-
   Total	35,173	37,288	32,643	16,680	1,616	123,402	3,869	127,272	(7,172)	120,099
   Segment income (loss)	2,584	(1,297)	(375)	1,325	735	2,972	38	3,011	(1,102)	1,909

   Notes: 1. "Other" comprises businesses such as sales of other products, employees' welfare services, and provision of chemical products, that are not included in the reportable segments.

   1. Adjustment to segment income (loss), which amounted to minus ¥1,102 million, consists mainly of ¥365 million for elimination of inter-segment transactions among reportable segments, minus ¥69 million for adjustments of inventories, and minus ¥1,398 million for company-wide costs that do not belong to any reportable segments.

      Company-wide costs are comprised mainly of expenses for research and development conducted by the research and development division and other units that are not included in the reportable segments.

   2. Adjustment to segment income (loss) is based on operating income/loss reported in the interim consolidated statements of income for the corresponding period.

2. Six months ended September 30, 2025 (April 1, 2025 to September 30, 2025)

   Net sales and income/loss by reportable segment

   (Millions of yen)

   	Reportable segment						Other (Note 1)	Total	Adjustments (Note 2)	Amounts on consolidated statements of income (Note 3)
   	Power Infrastructure	Public, Industrial & Commercial Sector	Mobility & Electrical Components	Field Service Engineering	Real Estate	Sub-total
   Net sales
   Sales to outside customers	43,097	34,771	32,564	17,402	1,597	129,433	1,708	131,142	-	131,142
   Inter-segment sales and transfers	273	3,658	504	1,218	18	5,673	2,481	8,154	(8,154)	-
   Total	43,371	38,429	33,068	18,620	1,616	135,107	4,190	139,297	(8,154)	131,142
   Segment income (loss)	3,725	(1,877)	12	2,078	756	4,696	(16)	4,679	(1,887)	2,792

   Notes: 1. "Other" comprises businesses such as sales of other products, employees' welfare services, and provision of chemical products, that are not included in the reportable segments.

   1. Adjustment to segment income (loss), which amounted to minus ¥1,887 million, consists mainly of ¥303 million for elimination of inter-segment transactions among reportable segments, ¥5 million for adjustments of inventories, and minus ¥2,195 million for company-wide costs that do not belong to any reportable segments.

      Company-wide costs are comprised mainly of expenses for research and development conducted by the research and development division and other units that are not included in the reportable segments.

   2. Adjustment to segment income (loss) is based on operating income/loss reported in the interim consolidated statements of income for the corresponding period.

Oct 30, 2025

＜TSE：6508＞

Contents

〈Financial conditions〉

１．Financial Results and Forecast

２．The results for each business segment

（Orders）

（Net sales）

（Power Infrastructure）

（Public, Industrial & Commercial Sector）

（Mobility & Electrical Components）

（Field Service Engineering）

（Real Estate）

（Other）

３．Overseas ratio of sales

＜Contact us＞

Meidensha Corporation Corporate Communications & PR Promotion Divison

TEL：81-3-6420-8100

〈Financial conditions〉

（￥million）

１．Financial Results and Forecast

２．The results for each business segment

（Orders）

（￥million）

（￥million）

（Net sales）

（Power Infrastructure）

（￥million）

（￥million）

（Public, Industrial & Commercial Sector）

（Mobility & Electrial Components）

（Field Service Engineering）

（￥million）

（￥million）

（￥million）

（Real Estate）

（Other）

３．Overseas ratio of sales

（￥million）

（￥million）

（￥million）