Meidensha : Financial Result for FY2025 Q4

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 of annual general meeting of shareholders : June 25,2026 Scheduled date to commence dividend payments : June 26,2026 Scheduled date to file annual securities report : June 24,2026 Preparation of supplementary material on financial results : Yes

Holding of financial results briefing: Yes (for institutional investors and analysts)

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

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2026

   (April 1, 2025 to March 31, 2026)

   1. Consolidated Operating Results

      (Percentage figures represent year-on-year changes)

      	Net sales		Operating income		Ordinary income		Net income attributable to owners of the parent
      Fiscal year ended March 31, 2026 Fiscal year ended March 31, 2025	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      	326,194 301,101	8.3 4.6	27,122 21,512	26.1 69.0	27,889 21,192	31.6 58.3	23,625 18,487	27.8 65.0

      (Note) Comprehensive income:

      Fiscal year ended March 31, 2026 42,778 million yen (157.1 %)

      Fiscal year ended March 31, 2025 16,636 million yen (-20.0 %)

      	Basic net income per share	Diluted net income per share	Return on equity	Return on total assets	Operating margin
      Fiscal year ended March 31, 2026 Fiscal year ended March 31, 2025	Yen	Yen - -	%	%	%
      	520.78 407.51		15.1 13.9	7.8 6.3	8.3 7.1

      (Reference) Equity in earnings of affiliates

      As of March 31, 2026 - million yen As of March 31, 2025 - million yen

   2. Consolidated Financial Position

      	Total assets	Total equity	Equity ratio	Net assets per share
      	Millions of yen	Millions of yen	%	yen
      As of March 31, 2026	373,668	178,531	46.8	3,855.25
      As of March 31, 2025	341,347	142,212	40.7	3,059.10

      (Reference) Equity:

      As of March 31, 2026 174,889 million yen

      As of March 31, 2025 138,777 million yen

   3. Cash Flows

      	Net cash provided by (used in) operating activities	Net cash provided by (used in) investing activities	Net cash provided by (used in) financing activities	Cash and cash equivalents at end of term
      As of March 31, 2026	Millions of yen 17,498	Millions of yen (17,134)	Millions of yen (7,785)	Millions of yen 23,639
      As of March 31, 2025	35,454	(9,065)	(14,536)	29,091

2. Dividend Status

   	Dividend per share					Total dividends	Dividend payout ratio (consolidated)	Dividend on equity ratio (consolidated)
   	1Q- end	2Q- end	3Q- end	4Q-end	Total
   	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   Fiscal year ended March 31, 2025	-	35.00	-	88.00	123.00	5,579	30.2	4.2
   Fiscal year ended March 31, 2026	-	47.00	-	110.00	157.00	7,122	30.1	4.5
   Fiscal year ending March 31, 2027 (Forecast)	-	-	-	-	-		-

   (Note) Dividends for the fiscal year ending March 31, 2027 are yet to be determined at the present time.

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2027 (April 1, 2026 to March 31, 2027)

(Percentage figures represent year-on-year changes)

* Notes

1. Significant changes in the scope of consolidation during the period: Yes Newly added: 1 company (REATEC CORPORATION)

   Excluded: 1 company (SHANGHAI MEIDENSHA CHANGCHENG SWITCHGEAR CO., LTD.)

2. 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

3. Number of shares issued (common stock)

   1. Number of shares issued at the end of the period (including treasury stock) As of March 31, 2026 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 March 31, 2026 163,577 shares

      As of March 31, 2025 162,152 shares

   3. Average number of shares during the period

Fiscal year ended March 31, 2026 45,364,732 shares

Fiscal year ended March 31, 2025 45,365,972 shares

(Reference) Summary of Non-Consolidated Financial Results

1. Non-Consolidated Financial Results for the Fiscal Year Ended March 2026

   (April 1, 2025 to March 31, 2026)

   1. Non-Consolidated Financial Results

      (Percentage figures represent year-on-year changes)

      	Net sales		Operating income		Ordinary income		Net income attributable to owners of the parent
      Fiscal year ended March 31, 2026 Fiscal year ended March 31, 2025	Millions of yen 196,960 181,573	% 8.5 (1.5)	Millions of yen 4,136 1,288	% 221.0 211.5	Millions of yen 16,445 5,078	% 223.8 (1.6)	Millions of yen 14,111 7,654	% 84.4 14.2

      	Basic net income per share	Diluted net income per share
      	Yen	Yen - -
      Fiscal year ended March 31, 2026	311.07
      Fiscal year ended March 31, 2025	168.73

   2. Non-Consolidated Financial Position

      	Total assets	Total equity	Equity ratio	Net assets per share
      	Millions of yen	Millions of yen	%	yen
      As of March 31, 2026	277,984	113,177	40.7	2,494.89
      As of March 31, 2025	258,641	95,798	37.0	2,111.71

      (Reference) Equity:

      As of March 31, 2026 113,177 million yen

      As of March 31, 2025 95,798 million yen

      • 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 (4) Future Outlook" on page 9 of the attached materials.

      (How to obtain supplementary materials on financial results)

      Supplementary materials for the financial results will be disclosed on TDnet on the same day and are scheduled to be published on the Company's website promptly after the announcement of the financial results.

      Table of Contents

      1. Operating Results 6

         1. Analysis of Operating Results 6

         2. Analysis of Financial Condition 7

         3. Cash Flows 7

         4. Future Outlook 9

         5. Basic Policy on Dividend of Surplus and Dividends during the Current Fiscal Year and Next Fiscal Year 9

      2. Basic Approach to the Selection of Accounting Standards 9

      3. Consolidated Financial Statements and Notes 10

         1. Consolidated Balance Sheets 10

         2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 12

         3. Consolidated Statements of Changes in Net Assets 15

         4. Consolidated Statements of Cash Flows 17

         5. Notes on Consolidated Financial Statements 18

            (Notes on the Going-concern Assumption) 18

            (Significant Matters that Serve as the Basis for Preparation of Consolidated Financial Statements)

            . 18

            (Segment and Other Information) 19

            (Per Share Information) 24

            (Important Subsequent Events) 24

      4. Non-Consolidated Financial Statements and Notes 25

         1. Balance Sheets 25

         2. Statements of Income 27

         3. Statements of Changes in Net Assets 28

         4. Notes on Non-Consolidated Financial Statements 30

            (Notes on the Going-concern Assumption) 30

      5. Others 30

      Changes in Officers 30

      1. ‌Operating Results
         1. ‌Analysis of Operating Results

            In the year ended March 31, 2026, the Japanese economy saw continued improvement in the employment and income environment, driven by substantial wage increases in the annual spring labor negotiations, while government initiatives to implement growth investment and crisis-management investment served as a factor supporting the economy. Meanwhile, the outlook remains uncertain due to trends in U.S. tariff policies, geopolitical risks associated with heightened tensions in the Middle East, and the resulting rise in energy prices and surge in raw material prices.

            In the markets related to the Company, demand in the domestic electric power market remained firm, driven by the need to replace aging equipment and by demand underpinned by disaster-prevention and national resilience policies. In addition, demand for SF6-free products is expanding, particularly in developed countries overseas, due to tighter environmental regulations, providing a tailwind for the Company's business. Meanwhile, the shift toward EVs in the automotive industry has temporarily slowed, which has had a certain impact on the performance of our EV business.

            Against this backdrop, based on the policies set forth in Medium-Term Management Plan 2027, we have strategically implemented initiatives in the three areas of "products," "business," and "technology" as the first year of "Growth & Challenge." Furthermore, as the management foundation supporting our growth strategy, we have promoted the "deepening of green strategy," "strengthening of human capital," and "acceleration of internal DX," while also working to further strengthen our foundation for value creation.

            Operating results for the year ended March 31, 2026 were as follows.

            (Unit: millions of yen)

            	Fiscal year ended March 31, 2025 Result	Fiscal year ended March 31, 2026 Result	Change	Change (%)
            Net sales	301,101	326,194	25,092	8.3
            Operating income (loss)	21,512	27,122	5,609	26.1
            Ordinary income (loss)	21,192	27,889	6,697	31.6
            Net income (loss) attributable to owners of the parent	18,487	23,625	5,138	27.8

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

            1. Power Infrastructure Business

               Net sales in the segment increased 16.7% year on year to ¥100,844 million, and operating income improved by ¥4,596 million to ¥12,584 million, marking record highs for both net sales and operating income.

               In the Power T&D business mainly operating overseas, sales and income increased due to growth in demand and efforts to improve profitability mainly in the U.S., Singapore and other regions. In the Power & Energy business mainly operating in Japan, both sales and income increased on the back of an increase in demand for projects for electric power companies.

            2. Public, Industrial & Commercial Sector Business

               Net sales in the segment increased 8.5% year on year to ¥104,555 million, and operating income improved by ¥1,057 million to ¥4,092 million.

               The Social Infrastructure business posted increases in sales and income due to progress on ongoing construction projects exceeding expectations. In the Railways business, sales and income increased due to accelerated demand for certain ongoing construction projects and subsequent improvements in the profitability of overseas projects. In the Water Infrastructure business, while sales remained roughly on par with the previous year, income improved due to the expansion of high-margin projects accounted for based on progress of construction.

            3. Mobility & Electrical Components Business

               Net sales in the segment decreased 3.8% year on year to ¥69,308 million, while operating income deteriorated by ¥1,111 million to ¥21 million.

               In the Mobility T&S business, sales and income increased due to steady sales from major projects secured in the previous fiscal year. In the Motor Drive Solutions business and the Electronics Products business, sales declined only slightly, while operating income decreased due to lower margins resulting from changes in product mix and equipment utilization rates. In the EV business, both sales and income declined, mainly due to a drop in sales volume for models equipped with our products.

            4. Field Service Engineering Business

               Net sales in the segment increased 15.0% to ¥57,007 million and operating income improved by ¥2,742 million to ¥12,673 million.

               In addition to continued strong demand for maintenance services, an increase in projects to be recognized as sales in the current fiscal year resulted in record high net sales and operating income for the third consecutive year, realizing continued increases in sales and income.

            5. Real Estate Business

               Net sales in the segment decreased 0.1% year on year to ¥3,233 million, and operating income deteriorated by ¥29 million to ¥1,413 million.

            6. Other

            In businesses not included in reportable segments, while net sales increased by 2.9% year on year to

            ¥8,920 million, operating income deteriorated by ¥386 million to ¥91 million.

         2. ‌Analysis of Financial Condition

            Total assets at March 31, 2026 amounted to ¥373,668 million, an increase of ¥32,321 million (9.5%) from the end of the previous fiscal year (March 31, 2025).

            Current assets rose by ¥23,154 million (10.7%) from the end of the previous fiscal year to ¥240,271 million, driven by an increase in notes and accounts receivable-trade, and contract assets.

            Fixed assets increased by ¥9,166 million (7.4%) to ¥133,396 million due to an increase in investment securities caused by rising market prices of listed shares held by the Company.

            Total liabilities at March 31, 2026 were ¥195,136 million, a decrease of ¥3,997 million (2.0%) from the end of the previous fiscal year, attributable to a decrease in net retirement benefit liability.

            Total net assets amounted to ¥178,531 million, an increase of ¥36,318 million (25.5%) from the end of the previous fiscal year, owing to the recording of net income attributable to owners of the parent and an increase in unrealized gains on available-for-sale securities.

            As a result, the equity ratio came to 46.8% as of March 31, 2026, compared with 40.7% at the end of the previous fiscal year.

         3. ‌Cash Flows

            Cash and cash equivalents at March 31, 2026, amounted to ¥23,639 million, a decrease of ¥5,452 million from the previous fiscal year-end.

            The following are the main factors affecting changes in cash flows during the fiscal year under review.

            (Cash Flows from Operating Activities)

            Net cash provided by operating activities in the fiscal year ended March 31, 2026 amounted to ¥17,498 million, compared with ¥35,454 million provided in the previous fiscal year.

            The major inflows were income before income taxes of ¥30,820 million and depreciation and amortization of ¥11,174 million, while the major outflow was an increase in trade receivables of ¥14,125 million and

            income taxes paid of ¥7,699 million.

            (Cash Flows from Investing Activities)

            Net cash used in operating activities totaled ¥17,134 million, compared with ¥9,065 million used in the previous fiscal year.

            The major outflow was purchase of property, plant and equipment and intangible assets of ¥15,241 million, while the major inflow was proceeds from sale of property, plant and equipment of ¥6,090 million.

            (Cash Flows from Financing Activities)

            Net cash used in financing activities amounted to ¥7,785 million, compared with ¥14,536 million used in the previous fiscal year.

            The major outflows were repayment of long-term debt of ¥7,246 million and cash dividends paid of ¥6,114 million, while the major inflow was proceeds from long-term debt of ¥4,550 million.

            (Reference) Trends in Cash Flow-Related Indices

            For the years ended March 31	2022	2023	2024	2025	2026
            Equity ratio (%)	35.1	35.1	37.8	40.7	46.8
            Equity ratio on a market capitalization basis (%)	39.6	28.4	39.8	57.3	91.1
            Ratio of interest-bearing debt to cash flow (years)	4.8	4.1	6.8	1.4	2.9
            Interest coverage ratio (times)	20.1	16.7	9.9	35.9	19.0

            Equity ratio: Total equity / Total assets

            Equity ratio on a market capitalization basis: Market capitalization / Total assets Ratio of interest-bearing debt to cash flow: Interest-bearing debt / Cash flow

            Interest coverage ratio: Cash flow / Interests paid

            Note 1. All figures are based on consolidated financial results.

            Note 2. Market capitalization is calculated based on the number of outstanding shares excluding treasury stock.

            Note 3. Calculations involving cash flow use cash flows from operating activities.

            Note 4. Interest-bearing debt includes all debt recorded on the consolidated balance sheets for which interest is paid.

         4. ‌Future Outlook

            Amid growing demands for solving social issues and achieving sustained economic and industrial development, it is anticipated that the environment surrounding companies and the nature of the value they should provide are expected to undergo significant and diverse changes in the future. Under these circumstances, the Group has positioned its Medium-Term Management Plan 2027 as a two-year period in which to achieve both "steady growth meeting needs" and "changes and challenges for the future," and will accelerate its efforts toward sustainable value creation while enhancing its ability to respond to further change.

            The current management forecast for consolidated financial results for the year ending March 31, 2027 is as follows.

            (Consolidated Financial Forecast) (Unit: millions of yen)

            	Fiscal year ended March 31, 2026 Result	Fiscal year ending March 31, 2027 Forecast	Year-on-year change
            Orders	358,239	375,000	16,760
            Net sales	326,194	355,000	28,805
            Operating income	27,122	29,000	1,877
            Ordinary income	27,889	29,000	1,110
            Net income attributable to owners of the parent	23,625	22,000	(1,625)

         5. ‌Basic Policy on Dividend of Surplus and Dividends during the Current Fiscal Year and Next Fiscal Year

         The Company positions appropriate returns to shareholders as an important management issue, and its basic policy is to increase shareholders' equity and enhance return on equity, in addition to paying appropriate dividends according to business performance.

         Dividends of surplus for the fiscal year under review are scheduled to be ¥110 per share for the year-end dividend considering the above basic policy and consolidated performance for the fiscal year. Along with the ¥47 interim dividend, the dividends of surplus per share for the fiscal year under review will be ¥157.

         Dividends for the next fiscal year are yet to be determined at the present time.

      2. ‌Basic Approach to the Selection of Accounting Standards

         The Meiden Group's policy for the time being is to prepare its consolidated financial statements based on the Japanese accounting standards after taking into account the comparability of the consolidated financial statements between terms and with other companies.

         The Group plans to respond appropriately to the application of the International Financial Reporting Standards (IFRS) by considering the situation prevailing in Japan and abroad.

      3. ‌Consolidated Financial Statements and Notes
         1. ‌Consolidated Balance Sheets

            As of March 31,

            As of March 31,

            Assets

            Current assets

            2025 2026

            millions of yen millions of yen

            Cash and time deposits	30,679	31,826
            Notes and accounts receivable-trade, and contract assets	104,591	121,733
            Electronically recorded monetary claims-operating	8,046	7,865
            Merchandise and finished goods	8,730	10,197
            Work in process	46,039	45,690
            Raw materials and supplies	13,041	13,811
            Other current assets	6,508	9,695
            Allowance for doubtful accounts	(519)	(548)
            Total current assets	217,116	240,271
            Fixed assets
            Property, plant and equipment
            Buildings and structures	102,731	106,266
            Accumulated depreciation and accumulated impairment loss	(64,392)	(68,094)
            Buildings and structures, net	38,339	38,172
            Machinery, equipment and vehicles,	73,459	77,873
            Accumulated depreciation and accumulated impairment loss	(58,989)	(63,799)
            Machinery, equipment and vehicles, net	14,470	14,074
            Land	12,542	11,959
            Construction in progress	4,463	5,584
            Other property, plant and equipment	29,731	31,420
            Accumulated depreciation and accumulated impairment loss	(24,485)	(25,639)
            Other property, plant and equipment, net	5,245	5,780
            Total property, plant and equipment	75,061	75,571
            Intangible assets
            Software	4,692	4,523
            Goodwill	1,428	775
            Other	571	515
            Total intangible assets	6,693	5,815
            Investments and other assets
            Investment securities	23,498	36,928
            Long-term loans receivable	33	34
            Deferred tax assets	16,467	11,425
            Other assets	2,504	3,648
            Allowance for doubtful accounts	(27)	(27)
            Total investments and other assets	42,476	52,009
            Total fixed assets	124,230	133,396
            Total assets	341,347	373,668

            As of March 31, 2025

            As of March 31, 2026

            millions of yen millions of yen

            Liabilities

            Current liabilities
            Notes and accounts payable-trade	34,504	33,556
            Electronically recorded obligations-operating	2,536	4,664
            Short-term borrowings	11,095	16,340
            Commercial paper	6,000	5,000
            Accounts payable-other	5,141	3,502
            Accrued income taxes	4,768	6,343
            Contract liabilities	21,559	23,294
            Accrued bonuses for employees	9,992	10,332
            Provision for product warranties	1,481	2,666
            Provision for loss on orders	588	531
            Other current liabilities	20,401	20,156
            Total current liabilities	118,069	126,388
            Long-term liabilities
            Long-term debt	27,470	23,064
            Net defined benefit liability	48,579	40,807
            Provision for environmental measures	79	32
            Other long-term liabilities	4,935	4,844
            Total long-term liabilities	81,064	68,747
            Total liabilities	199,134	195,136
            Net assets Shareholders' equity Common stock	17,070	17,070
            Capital surplus	10,226	10,140
            Retained earnings	93,273	110,774
            Treasury stock	(202)	(210)
            Total shareholders' equity	120,367	137,774
            Accumulated other comprehensive income
            Unrealized gains on available-for-sale securities	11,081	20,480
            Foreign currency translation adjustment	7,441	10,810
            Remeasurements of defined benefit plans	(112)	5,823
            Total accumulated other comprehensive income	18,409	37,114
            Non-controlling interests	3,435	3,642
            Total net assets	142,212	178,531
            Total liabilities and net assets	341,347	373,668

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

            Consolidated Statements of Income

            	Year ended	Year ended
            	March 31, 2025	March 31, 2026
            	millions of yen	millions of yen
            Net sales	301,101	326,194
            Cost of sales	219,509	233,647
            Gross profit	81,592	92,546
            Selling, general and administrative expenses
            Freightage and packing expenses	1,068	1,229
            Sales commission	1,246	1,672
            Employees' salaries and allowances	17,458	18,441
            Bonuses and accrued bonuses for employees	7,249	8,080
            Provision for employees' severance and retirement benefits	1,549	1,657
            Depreciation and amortization	3,084	3,147
            Rent expenses	1,546	1,587
            Correspondence and transportation expenses	2,340	2,588
            Research expenses	5,063	5,957
            Other	19,472	21,060
            Total selling, general and administrative expenses	60,080	65,424
            Operating income (loss)	21,512	27,122
            Non-operating income
            Interest and dividend income	1,100	1,181
            Rent income	88	82
            Foreign exchange gains	-	772
            Gain on sale of raw materials	460	617
            Other	520	588
            Total non-operating income	2,170	3,242
            Non-operating expenses
            Interest expenses	986	928
            Loss on foreign exchange	201	-
            Loss on abandonment of fixed assets	249	472
            Seconded employee expenses	83	72
            Other	968	1,001
            Total non-operating expenses	2,490	2,475
            Ordinary income (loss)	21,192	27,889

            	Year ended	Year ended
            	March 31, 2025 millions of yen	March 31, 2026 millions of yen
            Extraordinary income
            Gain on sales of fixed assets	640	5,391
            Gain on sales of investment securities	1,274	967
            Gain on negative goodwill	19	-
            Gain on liquidation of subsidiaries and associates	-	93
            Insurance claim income	1,165	-
            Total extraordinary income	3,100	6,451
            Extraordinary loss
            Loss on valuation of shares of subsidiaries and associates	-	218
            Loss on liquidation of subsidiaries and associates	19	-
            Impairment loss	-	3,303
            Loss on disaster	354	-
            Other	83	-
            Total extraordinary loss	456	3,521
            Income (loss) before income taxes	23,836	30,820
            Income taxes
            Current	6,448	8,831
            Deferred	(1,486)	(2,016)
            Total income taxes	4,961	6,814
            Net income (loss)	18,874	24,005
            Net income (loss) attributable to the non-controlling interests	387	380
            Net income (loss) attributable to owners of the parent	18,487	23,625

            Consolidated Statements of Comprehensive Income

            	Year ended	Year ended
            	March 31, 2025	March 31, 2026
            	millions of yen	millions of yen
            Net income (loss)	18,874	24,005
            Other comprehensive income
            Unrealized gains (losses) on available-for-sale securities	(2,216)	9,399
            Foreign currency translation adjustment	(150)	3,437
            Remeasurements of defined benefit plans	129	5,936
            Total other comprehensive income	(2,237)	18,773
            Comprehensive income	16,636	42,778
            Comprehensive income attributable to:
            Owners of the parent	16,231	42,330
            Non-controlling interests	405	448

         3. ‌Consolidated Statements of Changes in Net Assets Year ended March 31, 2025 (April 1, 2024 to March 31, 2025)

            (millions of yen)

            	Shareholders' equity
            	Common stock	Capital surplus	Retained earnings	Treasury stock	Total shareholders' equity
            Balance at beginning of term	17,070	10,226	78,642	(197)	105,741
            Changes during term
            Cash dividends			(3,856)		(3,856)
            Net income (loss) attributable to owners of the parent			18,487		18,487
            Purchase of treasury stock				(5)	(5)
            Change in ownership interest of parent due to transactions with non-controlling interests					-
            Net changes in other than shareholders' equity
            Total changes during term	-	-	14,631	(5)	14,626
            Balance at end of term	17,070	10,226	93,273	(202)	120,367

            	Accumulated other comprehensive income				Non-controlling interests	Total net assets
            	Unrealized gains on available-for-sale securities	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
            Balance at beginning of term	13,297	7,610	(241)	20,665	3,081	129,488
            Changes during term
            Cash dividends						(3,856)
            Net income (loss) attributable to owners of the parent						18,487
            Purchase of treasury stock						(5)
            Change in ownership interest of parent due to transactions with non-controlling interests						-
            Net changes in other than shareholders' equity	(2,216)	(169)	129	(2,256)	354	(1,901)
            Total changes during term	(2,216)	(169)	129	(2,256)	354	12,724
            Balance at end of term	11,081	7,441	(112)	18,409	3,435	142,212

            Year ended March 31, 2026 (April 1, 2025 to March 31, 2026)

            (millions of yen)

            	Shareholders' equity
            	Common stock	Capital surplus	Retained earnings	Treasury stock	Total shareholders' equity
            Balance at beginning of term	17,070	10,226	93,273	(202)	120,367
            Changes during term
            Cash dividends			(6,124)		(6,124)
            Net income (loss) attributable to owners of the parent			23,625		23,625
            Purchase of treasury stock				(8)	(8)
            Change in ownership interest of parent due to transactions with non-controlling interests		(86)			(86)
            Net changes in other than shareholders' equity
            Total changes during term	-	(86)	17,500	(8)	17,406
            Balance at end of term	17,070	10,140	110,774	(210)	137,774

            	Accumulated other comprehensive income				Non-controlling interests	Total net assets
            	Unrealized gains on available-for-sale securities	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
            Balance at beginning of term	11,081	7,441	(112)	18,409	3,435	142,212
            Changes during term
            Cash dividends						(6,124)
            Net income (loss) attributable to owners of the parent						23,625
            Purchase of treasury stock						(8)
            Change in ownership interest of parent due to transactions with non-controlling interests						(86)
            Net changes in other than shareholders' equity	9,399	3,369	5,936	18,705	206	18,912
            Total changes during term	9,399	3,369	5,936	18,705	206	36,318
            Balance at end of term	20,480	10,810	5,823	37,114	3,642	178,531

         4. ‌Consolidated Statements of Cash Flows

            Year ended

            Year ended

            March 31, 2025 March 31, 2026

            	millions of yen	millions of yen
            Cash flows from operating activities
            Income (loss) before income taxes	23,836	30,820
            Depreciation and amortization	10,463	11,174
            Impairment loss	-	3,303
            Amortization of goodwill	699	661
            Increase (decrease) in provisions	1,832	1,238
            Increase (decrease) in net defined benefit liability	1,322	859
            Interest and dividend income	(1,100)	(1,181)
            Interest expenses	986	928
            Loss (gain) on sales of property, plant and equipment	(640)	(5,391)
            Loss (gain) on sales of investment securities	(1,274)	(967)
            Loss on valuation of shares of subsidiaries and associates	-	218
            Insurance claim income	(1,165)	-
            Decrease (increase) in trade receivables and contract assets	5,159	(14,125)
            Decrease (increase) in inventories	(777)	(2)
            Increase (decrease) in trade payables	(4,433)	(3,902)
            Other	3,121	1,306
            Sub total	38,029	24,939
            Interest and dividends received	1,104	1,180
            Interest expenses paid	(988)	(921)
            Proceeds from insurance income	1,644	-
            Payments for fire losses	(25)	-
            Income taxes paid	(4,309)	(7,699)
            Net cash provided by (used in) operating activities	35,454	17,498
            Cash flows from investing activities
            Proceeds from sale of property, plant and equipment	947	6,090
            Purchase of property, plant and equipment, and intangible assets	(10,547)	(15,241)
            Proceeds from sales of investment securities	1,422	1,048
            Decrease (increase) in time deposits	161	(6,557)

            Purchase of shares of subsidiaries resulting in change in scope of consolidation

            - (5)

            Proceeds from purchase of shares of subsidiaries resulting in change in scope of consolidation	11	-
            Other	(1,060)	(2,468)
            Net cash provided by (used in) investing activities	(9,065)	(17,134)
            Cash flows from financing activities
            Net increase (decrease) in short-term borrowings	(4,623)	2,903
            Redemption of bonds	(6,000)	-
            Increase (decrease) in commercial paper	(4,000)	(1,000)
            Proceeds from long-term debt	5,900	4,550
            Repayment of long-term debt	(1,271)	(7,246)
            Cash dividends paid	(3,851)	(6,114)
            Cash dividends paid to non-controlling interests	(51)	(100)
            Payments from changes in ownership interests in subsidiaries that do - (86)
            not result in change in scope of consolidation
            Other	(638)	(692)
            Net cash provided by (used in) financing activities	(14,536)	(7,785)
            Effect of exchange rate on cash and cash equivalents	13	1,969
            Net increase (decrease) in cash and cash equivalents	11,867	(5,452)
            Cash and cash equivalents at beginning of term	17,224	29,091
            Cash and cash equivalents at end of term	29,091	23,639

         5. ‌Notes on Consolidated Financial Statements

         ‌(Notes on the Going-concern Assumption)

         Not applicable

         ‌(Significant Matters that Serve as the Basis for Preparation of Consolidated Financial Statements) Significant Changes to Scope of Consolidation

         During the year ended March 31, 2026, REATEC CORPORATION was included in the scope of consolidation

         due to the acquisition of its shares, and SHANGHAI MEIDENSHA CHANGCHENG SWITCHGEAR CO., LTD. was excluded from the scope of consolidation due to the completion of its liquidation.

         ‌(Segment and Other Information) [Segment information]

         1. Overview of reportable segment

            Method of determining reportable segments

            The Company's reportable segments are components of the Company for which separate financial information is available. These segments are subject to periodic examinations to enable the Company's Board of Directors to decide how to allocate resources and assess performance.

            The Company has business divisions based on product and service categories and operates under a comprehensive strategy formulated for products and services handled.

            The Company's operations are, therefore, classified based on product and service categories into five reportable segments, namely "Power Infrastructure," "Public, Industrial & Commercial Sector," "Mobility & Electrical Components," "Field Service Engineering," and "Real Estate."

            Reportable segment Description of businesses

            This business provides heavy electrical equipment and systems for

            Power Infrastructure

            Public, Industrial & Commercial Sector

            Mobility & Electrical Components

            the generation and transmission of electricity to electric power and

            other companies

            This business provides heavy electrical equipment and systems to users of electricity such as public agencies, railway operators, and private-sector companies

            This business provides components for the semiconductor, general industrial, and electric vehicle fields, as well as automotive R&D systems

            Field Service Engineering This business operates the maintenance business.

            Real Estate This business operates related to the rental of real estates.

         2. Calculation method for net sales, income/loss, assets, liabilities and other items by reportable segment The accounting methods for reported business segments are generally the same as those stated in "Significant Matters that Serve as the Basis for Preparation of Consolidated Financial Statements." Segment income (loss) is based on operating income (loss).

            Inter-segment sales and transfers are based on market price.

         3. Net sales, income/loss, assets, liabilities, and other items by reportable segment Year ended March 31, 2025 (April 1, 2024 to March 31, 2025)

            (Millions of yen)

            	Reportable segment						Other (note)	Total	Adjustments	Amounts on consolidated financial statements
            	Power Infrastructure	Public, Industrial & Commercial Sector	Mobility & Electrical Components	Field Service Engineering	Real Estate	Sub-total
            Net sales
            Sales to outside customers	85,417	90,617	70,473	47,679	3,197	297,385	3,716	301,101	-	301,101
            Inter-segment sales and transfers	1,020	5,705	1,605	1,887	37	10,256	4,956	15,213	(15,213)	-
            Total	86,437	96,323	72,079	49,567	3,235	307,642	8,672	316,315	(15,213)	301,101
            Segment income (loss)	7,988	3,034	1,132	9,931	1,443	23,530	477	24,008	(2,496)	21,512
            Segment assets	91,675	84,446	58,563	39,541	10,295	284,523	8,745	293,268	48,078	341,347
            Other items
            Depreciation/ amortization	3,042	1,175	2,929	363	551	8,062	232	8,295	2,167	10,463
            Amortization of goodwill	697	2	-	-	-	699	-	699	-	699
            Increase in PP&E and intangible assets	5,394	1,370	1,420	198	75	8,458	223	8,682	3,270	11,953

            Note: "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.

            Year ended March 31, 2026 (April 1, 2025 to March 31, 2026)

            (Millions of yen)

            	Reportable segment						Other (note)	Total	Adjustments	Amounts on consolidated financial statements
            	Power Infrastructure	Public, Industrial & Commercial Sector	Mobility & Electrical Components	Field Service Engineering	Real Estate	Sub-total
            Net sales
            Sales to outside customers	100,295	96,602	67,833	54,501	3,195	322,428	3,766	326,194	-	326,194
            Inter-segment sales and transfers	548	7,953	1,475	2,506	37	12,521	5,154	17,676	(17,676)	-
            Total	100,844	104,555	69,308	57,007	3,233	334,949	8,920	343,870	(17,676)	326,194
            Segment income (loss)	12,584	4,092	21	12,673	1,413	30,786	91	30,877	(3,755)	27,122
            Segment assets	112,239	92,712	56,242	41,507	10,862	313,563	8,977	322,541	51,126	373,668
            Other items
            Depreciation/ amortization	3,843	1,186	2,784	385	527	8,727	281	9,008	2,165	11,174
            Amortization of goodwill	655	2	-	2	-	660	-	660	1	661
            Increase in PP&E and intangible assets	5,469	3,060	1,750	478	281	11,040	225	11,265	6,816	18,082

            Note: "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.

         4. Adjustments of differences between the total amounts of reportable segments and amounts on consolidated financial statements

         (Millions of yen)

         Net sales	Year ended March 31, 2025	Year ended March 31, 2026
         Total reportable segments	307,642	334,949
         Net sales under "Other"	8,672	8,920
         Elimination of inter-segment transactions	(15,213)	(17,676)
         Net sales on the consolidated financial statements	301,101	326,194

         (Millions of yen)

         Income	Year ended March 31, 2025	Year ended March 31, 2026
         Total reportable segments	23,530	30,786
         Income under "Other"	477	91
         Elimination of inter-segment transactions	589	610
         Adjustments for inventories	(96)	(8)
         Other adjustments (Note)	(2,988)	(4,358)
         Operating income on the consolidated financial statements	21,512	27,122

         Note: Other adjustments comprise mainly expenses for research and development conducted by the research and development division and other units that are not included in the reportable segments.

         (Millions of yen)

         Assets	Year ended March 31, 2025	Year ended March 31, 2026
         Total reportable segments	284,523	313,563
         Assets under "Other"	8,745	8,977
         Corporate assets (Note)	92,042	94,362
         Other adjustments	(43,963)	(43,235)
         Total assets on the consolidated financial statements	341,347	373,668

         Note: Corporate assets consist of surplus funds (cash and time deposits) held by the Company, longterm investment funds, and assets attributable to the research and development division, etc.

         (Millions of yen)

         Other items

         Total reportable segments

         Other Adjustments

         Amounts on

         consolidated financial statements

         	FY2024	FY2025	FY2024	FY2025	FY2024	FY2025	FY2024	FY2025
         Depreciation/ amortization	8,062	8,727	232	281	2,167	2,165	10,463	11,174
         Amortization of goodwill	699	660	-	-	-	1	699	661
         Increase in PP&E and intangible	8,458	11,040	223	225	3,270	6,816	11,953	18,082

         assets

         Note: Adjustments for increase in PP&E and intangible assets consist mainly of capital investment in information systems for the whole company.

         [Related information]

         Year ended March 31, 2025 (April 1, 2024 to March 31, 2025)

         1. Information by product and service

            Information is omitted because the same information is provided in "Segment information."

         2. Information by geographic area

            (1) Net sales

            (Millions of yen)

            Japan Asia Other region Total 213,906 61,926 25,268 301,101

            Note: Net sales are based on the location of customers and classified into country or region.

            (2) Property, plant and equipment			(Millions of yen)
            Japan	Asia	Other region	Total
            59,181	13,567	2,312	75,061

         3. Information by major customer

         Information is omitted as there are no outside customers whose sales account for 10% or more of total net sales reported on the consolidated statements of income.

         Year ended March 31, 2026 (April 1, 2025 to March 31, 2026)

         1. Information by product and service

            Information is omitted because the same information is provided in "Segment information."

         2. Information by geographic area

            1. Net sales

               (Millions of yen)

               Japan Asia Other region Total 235,342 61,256 29,596 326,194

               Note: Net sales are based on the location of customers and classified into country or region.

            2. Property, plant and equipment

            (Millions of yen)

            Japan Asia Other region Total 60,384 11,333 3,853 75,571

         3. Information by major customer

         Information is omitted as there are no outside customers whose sales account for 10% or more of total net sales reported on the consolidated statements of income.

         [Impairment loss of fixed assets by reportable segment]

         Year ended March 31, 2025 (April 1, 2024 to March 31, 2025) Not applicable

         Year ended March 31, 2026 (April 1, 2025 to March 31, 2026)

         (Millions of yen)

         	Power Infrastructure	Public, Industrial & Commercial Sector	Mobility & Electrical Components	Field Service Engineering	Real Estate	Other	Corporate/ elimination	Total
         Impairment loss	-	-	3,303	-	-	-	-	3,303

         [Amortization and unamortized balance of goodwill by reportable segment]

         Year ended March 31, 2025 (April 1, 2024 to March 31, 2025)

         (Millions of yen)

         	Power Infrastructure	Public, Industrial & Commercial Sector	Mobility & Electrical Components	Field Service Engineering	Real Estate	Other	Corporate/ elimination	Total
         Amortization	697	2	-	-	-	-	-	699
         Unamortized balance	1,411	17	-	-	-	-	-	1,428

         Year ended March 31, 2026 (April 1, 2025 to March 31, 2026)

         (Millions of yen)

         	Power Infrastructure	Public, Industrial & Commercial Sector	Mobility & Electrical Components	Field Service Engineering	Real Estate	Other	Corporate/ elimination	Total
         Amortization	655	2	-	2	-	-	1	661
         Unamortized balance	749	16	-	-	-	-	9	775

         [Gain on negative goodwill by reportable segment]

         Year ended March 31, 2025 (April 1, 2024 to March 31, 2025)

         In the Field Service Engineering Business, we recognized a gain on negative goodwill due to the acquisition of KESENNUMA KANKYOKANRI CORPORATION as a consolidated subsidiary. The amount of gain on negative goodwill recorded as a result of this item is ¥19 million. Gain on negative goodwill is not included in segment income because it is included in extraordinary income.

         Year ended March 31, 2026 (April 1, 2025 to March 31, 2026) Not applicable

         ‌(Per Share Information)

         	Year ended March 31, 2025 (April 1, 2024 to March 31, 2025)	Year ended March 31, 2026 (April 1, 2025 to March 31, 2026)
         Net assets per share	3,059.10	3,855.25
         Net income per share	407.51	520.78

         (Notes) 1. Diluted net income per share is not stated because there are no dilutive shares.

2. The basis for calculation of net income per share is shown below.

‌(Important Subsequent Events)

Not applicable

1. ‌Non-Consolidated Financial Statements and Notes
   1. ‌Balance Sheets

      As of March 31,

      As of March 31,

      Assets

      2025 2026

      millions of yen millions of yen

      Current assets
      Cash and time deposits	9,261	6,497
      Notes and accounts receivable-trade, and contract assets	75,780	90,898
      Electronically recorded monetary claims-operating	6,487	5,059
      Finished goods	3,112	2,284
      Work in process	34,952	33,473
      Raw materials and supplies	800	810
      Other current assets	9,631	12,747
      Allowance for doubtful accounts	(300)	(1,010)
      Total current assets	139,727	150,761
      Fixed assets Property, plant and equipment
      Buildings	28,294	28,941
      Structures	1,563	1,630
      Machinery and equipment	5,923	7,078
      Vehicles	88	126
      Tools, furniture and fixtures	1,581	1,847
      Land	11,325	10,687
      Construction in progress	3,634	3,777
      Total property, plant and equipment	52,412	54,089
      Intangible assets
      Software	3,981	3,780
      Goodwill	324	288
      Other	82	88
      Total intangible assets	4,388	4,157
      Investments and other assets
      Investment securities	23,221	36,869
      Shares of subsidiaries and associates	25,040	20,946
      Long-term loans receivable	1,935	2,143
      Deferred tax assets	9,952	6,844
      Other assets	1,991	2,894
      Allowance for doubtful accounts	(27)	(723)
      Total investments and other assets	62,113	68,975
      Total fixed assets	118,914	127,222
      Total assets	258,641	277,984

      As of March 31, As of March 31,

      Liabilities

      2025 2026

      millions of yen millions of yen

      Current liabilities Notes payable-trade	180	214
      Electronically recorded obligations-operating	1,452	3,606
      Accounts payable-trade	25,048	24,447
      Short-term borrowings	6,250	6,480
      Commercial paper	6,000	5,000
      Accounts payable-other	4,632	2,313
      Accrued income taxes	904	2,680
      Contract liabilities	13,369	14,432
      Deposits received	26,908	26,366
      Accrued bonuses for employees	5,507	5,751
      Provision for product warranties	980	2,364
      Provision for loss on orders	463	316
      Other current liabilities	8,683	8,106
      Total current liabilities	100,381	102,079
      Long-term liabilities
      Long-term debt	23,990	22,060
      Provision for retirement benefits	36,003	36,352
      Provision for loss on guarantees	-	1,984
      Provision for environmental measures	79	32
      Other long-term liabilities	2,388	2,297
      Total long-term liabilities	62,462	62,726
      Total liabilities	162,843	164,806
      Net assets Shareholders' equity
      Common stock	17,070	17,070
      Capital surplus
      Legal capital surplus	5,000	5,000
      Other capital surplus	4,381	4,381
      Total capital surplus	9,381	9,381
      Retained earnings
      Legal retained earnings	3,296	3,296
      Other retained earnings Reserve for tax purpose reduction entry of fixed assets	136	136
      General reserve	8,263	8,263
      Retained earnings brought forward	46,822	54,809
      Total retained earnings	58,519	66,506
      Treasury stock	(260)	(268)
      Total shareholders' equity	84,711	92,689
      Valuation and translation adjustments
      Unrealized gains on available-for-sale securities	11,087	20,487
      Total valuation and translation adjustments	11,087	20,487
      Total net assets	95,798	113,177
      Total liabilities and net assets	258,641	277,984

   2. ‌Statements of Income

      	Year ended	Year ended
      	March 31, 2025	March 31, 2026
      	millions of yen	millions of yen
      Net sales	181,573	196,960
      Cost of sales	141,737	151,047
      Gross profit	39,836	45,912
      Selling, general and administrative expenses	38,547	41,776
      Operating income (loss)	1,288	4,136
      Non-operating income
      Interest income	88	131
      Dividend income	6,263	14,038
      Other	1,282	2,700
      Total non-operating income	7,634	16,870
      Non-operating expenses
      Interest expenses	400	603
      Other	3,444	3,958
      Total non-operating expenses	3,844	4,562
      Ordinary income (loss)	5,078	16,445
      Extraordinary income
      Gain on sales of fixed assets	-	5,391
      Gain on sales of investment securities	1,274	967
      Gain on liquidation of subsidiaries and associates	-	196
      Total extraordinary income	1,274	6,555
      Extraordinary loss
      Loss on valuation of shares of subsidiaries and associates	-	4,468
      Provision for loss on guarantees	-	1,984
      Provision of allowance for doubtful accounts	-	1,690
      Total extraordinary loss	-	8,143
      Income (loss) before income taxes	6,352	14,857
      Income taxes
      Current	(172)	1,959
      Deferred	(1,129)	(1,213)
      Total income taxes	(1,301)	745
      Net income (loss)	7,654	14,111

   3. ‌Statements of Changes in Net Assets Year ended March 31, 2025 (April 1, 2024 to March 31, 2025)

      (millions of yen)

      	Shareholders' equity
      	Common stock	Capital surplus			Retained earnings
      		Legal capital surplus	Other capital surplus	Total capital surplus	Legal retained earnings	Other retained earnings			Total Retained earnings
      						Reserve for tax purpose reduction entry of fixed assets	General reserve	Retained earnings brought forward
      Balance at beginning of term	17,070	5,000	4,381	9,381	3,296	139	8,263	43,021	54,721
      Changes during term
      Cash dividends								(3,856)	(3,856)
      Net income (loss)								7,654	7,654
      Purchase of treasury stock
      Net changes in other than shareholders' equity						(2)		2
      Total changes during term	-	-	-	-	-	(2)	-	3,800	3,798
      Balance at end of term	17,070	5,000	4,381	9,381	3,296	136	8,263	46,822	58,519

      	Shareholders' equity		Valuation and translation adjustments		Total net assets
      	Treasury stock	Total shareholders' equity	Unrealized gains on available-for-sale securities	Total valuation and translation adjustments
      Balance at beginning of term	(254)	80,917	13,303	13,303	94,221
      Changes during term
      Cash dividends		(3,856)			(3,856)
      Net income (loss)		7,654			7,654
      Purchase of treasury stock	(5)	(5)			(5)
      Net changes in other than shareholders' equity			(2,215)	(2,215)	(2,215)
      Total changes during term	(5)	3,793	(2,215)	(2,215)	1,577
      Balance at end of term	(260)	84,711	11,087	11,087	95,798

      Year ended March 31, 2026 (April 1, 2025 to March 31, 2026)

      (millions of yen)

      	Shareholders' equity
      	Common stock	Capital surplus			Retained earnings
      		Legal capital surplus	Other capital surplus	Total capital surplus	Legal retained earnings	Other retained earnings			Total Retained earnings
      						Reserve for tax purpose reduction entry of fixed assets	General reserve	Retained earnings brought forward
      Balance at beginning of term	17,070	5,000	4,381	9,381	3,296	136	8,263	46,822	58,519
      Changes during term
      Cash dividends								(6,124)	(6,124)
      Net income (loss)								14,111	14,111
      Purchase of treasury stock
      Net changes in other than shareholders' equity
      Total changes during term	-	-	-	-	-	-	-	7,987	7,987
      Balance at end of term	17,070	5,000	4,381	9,381	3,296	136	8,263	54,809	66,506

      	Shareholders' equity		Valuation and translation adjustments		Total net assets
      	Treasury stock	Total shareholders' equity	Unrealized gains on available-for-sale securities	Total valuation and translation adjustments
      Balance at beginning of term	(260)	84,711	11,087	11,087	95,798
      Changes during term
      Cash dividends		(6,124)			(6,124)
      Net income (loss)		14,111			14,111
      Purchase of treasury stock	(8)	(8)			(8)
      Net changes in other than shareholders' equity			9,400	9,400	9,400
      Total changes during term	(8)	7,978	9,400	9,400	17,379
      Balance at end of term	(268)	92,689	20,487	20,487	113,177

   4. ‌Notes on Non-Consolidated Financial Statements

   ‌(Notes on the Going-concern Assumption) Not applicable

2. ‌Others

‌Changes in Officers

For details regarding changes in officers, please refer to the "Notice Regarding Change of Representative Directors and Nomination of Director Candidates" disclosed on May 14, 2026.

May 14, 2026

＜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. Segment information

（Orders）

（￥ million）

（￥ million）

（Net sales）

（Power Infrastructure）

（￥ million）

（￥ million）

（Public, Industrial & Commercial Sector）

（Mobility & Electrical Components）

（Field Service Engineering）

（￥ million）

（￥ million）

（￥ million）

（Real Estate）

（Other）

３．Overseas ratio of sales

（￥ million）

（￥ million）

（￥ million）