| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥5854.7B | ¥5501.8B | +6.4% |
| Operating Income / Operating Profit | ¥256.3B | ¥217.4B | +17.9% |
| Ordinary Income | ¥236.5B | ¥197.8B | +19.5% |
| Net Income / Net Profit | ¥177.0B | ¥137.3B | +28.9% |
| ROE | 6.6% | 5.5% | - |
For the full year ended March 2026, results landed at revenue ¥5854.7B (YoY +¥352.9B +6.4%), operating income ¥256.3B (YoY +¥38.9B +17.9%), ordinary income ¥236.5B (YoY +¥38.7B +19.5%), and net income attributable to owners of the parent ¥155.9B (YoY +¥32.2B +26.0%), marking year-over-year revenue and profit growth. Operating margin improved to 4.4% (up +0.4pt from 4.0% a year earlier) and net margin improved to 3.0% (up +0.5pt from 2.5%), indicating improved profitability. Gross margin remained flat at 17.3% (prior year 17.3%), and SG&A ratio improved to 13.0% (down ▲0.4pt from 13.4%), reflecting higher cost efficiency. Extraordinary items contributed a net positive of ¥26.9B (gain on sale of investment securities ¥31.5B and gain on sale of fixed assets ¥6.5B totaling ¥38.0B, against impairment losses ¥11.1B). Non-operating items reduced profit, driven by equity-method investment losses ¥6.1B and interest expense ¥22.9B. By segment, Foil & Powder Products achieved the highest margin at 6.7%, and Processed Products & Related Business led significant profit growth with operating income up +87.9%. ROE improved to 6.6% (from 5.4% last year, +1.2pt), total assets were ¥5563.1B (YoY +2.2%), and net assets were ¥2679.3B (YoY +7.0%), indicating a strengthened financial base.
【Revenue】Revenue totaled ¥5854.7B (YoY +6.4%) and showed steady progress. By segment, Alumina & Chemicals, Metal Ingot contributed ¥1835.8B (+9.2%) as the largest revenue contributor; Plates & Extrusions ¥1112.2B (+6.0%); Processed Products & Related Business ¥1776.6B (+3.0%); Foil & Powder Products ¥1130.1B (+3.8%) — all achieved revenue growth. By region, sales in Japan were ¥4536.6B (¥4313.6B prior year, +5.2%), and other regions ¥1318.1B (¥1188.2B prior year, +10.9%), evidencing notable growth in overseas demand. The main drivers of revenue growth are presumed to be increased volumes of higher value-added products, expansion of overseas distribution channels, and foreign exchange effects.
【Profitability】Cost of sales rose in line with revenue to ¥4839.4B (prior year ¥4549.2B, +6.4%), keeping gross margin steady at 17.3%. SG&A was ¥759.0B (prior year ¥735.2B, +3.2%), growing at a lower rate than revenue, with SG&A ratio improving to 13.0% (down ▲0.4pt from 13.4%), enhancing cost efficiency. As a result, operating income reached ¥256.3B (+17.9%) and operating margin improved to 4.4% (+0.4pt). Non-operating income/expense improved to a net loss of ▲¥19.8B (prior year ▲¥24.0B). Interest expense increased to ¥22.9B (up ¥4.4B from ¥18.5B prior year), and equity-method investment losses of ¥6.1B (prior year ¥5.0B profit) were detractors, partially offset by dividend income ¥4.9B (prior year ¥4.3B). Ordinary income rose to ¥236.5B (+19.5%), with ordinary margin at 4.0% (up +0.4pt from 3.6%). Extraordinary items were net +¥26.9B (gain on sale of investment securities ¥31.5B, gain on sale of fixed assets ¥6.5B, impairment losses ¥11.1B), lifting profit before tax to ¥263.4B (prior year ¥201.1B, +31.0%). After corporate taxes ¥86.4B (effective tax rate 32.8%) and non-controlling interests ¥21.1B, net income attributable to owners of the parent was ¥155.9B (+26.0%). In conclusion, the company delivered a solid year of higher revenue and profit.
The Alumina & Chemicals, Metal Ingot segment recorded revenue ¥2694.9B (YoY +9.2%), operating income ¥99.4B (YoY ▲13.9%), with a margin of 3.7%. Although revenue is the largest, profits declined YoY, likely pressured by higher raw material and energy costs and market fluctuations. The Plates & Extrusions segment reported revenue ¥1667.7B (+6.0%), operating income ¥56.6B (+1.9%), margin 3.4%. Revenue growth was secured but profit growth remained muted, reflecting a persistently low-margin structure. Processed Products & Related Business reported revenue ¥1980.1B (+3.0%), operating income ¥59.6B (+87.9%), margin 3.0%. The profit growth rate was notably high, likely due to demand recovery for transportation-related products and insulated panels for refrigeration/freezing and efficiency improvements. Foil & Powder Products reported revenue ¥1133.6B (+3.8%), operating income ¥76.5B (+40.1%), margin 6.7% — the most profitable segment. High value-added packaging foil and powder products continue to generate stable profits. Aggregate operating income before corporate expenses for the four segments was ¥292.1B; after corporate expenses ¥35.8B, consolidated operating income was ¥256.3B.
【Profitability】Operating margin was 4.4%, up 0.4pt from 4.0% a year earlier, but 3.4pt below the manufacturing benchmark median of 7.8%, indicating significant room for improvement. Gross margin was flat at 17.3%, and SG&A ratio improved to 13.0% (down ▲0.4pt from 13.4%), reflecting effective cost containment. Net margin improved to 3.0% (up +0.5pt from 2.5%) but remains 2.2pt below the industry median of 5.2%. ROE improved to 6.6% (from 5.4% last year, +1.2pt), showing an upward trend historically, but capital efficiency improvement remains a challenge. 【Cash Quality】Operating Cash Flow (OCF) ¥256.2B was 1.45x of net income ¥177.0B and is healthy, but OCF/EBITDA ratio stood at 0.55x (EBITDA = operating income ¥256.3B + depreciation ¥209.5B = ¥465.8B), constrained by working capital increases (accounts receivable ▲¥11.5B, inventories ▲¥41.3B, accounts payable ▲¥41.4B totaling ▲¥94.2B) which pressured cash conversion. 【Investment Efficiency】Capital expenditures of ¥201.5B versus depreciation ¥209.5B indicate capex below depreciation (CapEx/Depreciation 0.96x), reflecting a maintenance/replacement-focused investment stance. FCF was positive at ¥75.4B (OCF ¥256.2B − Investing CF ¥180.8B), sufficiently covering dividend payments ¥46.6B. 【Financial Soundness】Equity Ratio was 48.2% (up +2.2pt from 46.0%), a neutral level. Interest-bearing debt was ¥1552.7B (short-term borrowings ¥449.1B + long-term borrowings ¥1103.2B + bonds ¥9.6B), with Debt/EBITDA at 3.33x, in a neutral range. Short-term borrowings decreased by ¥234.8B from ¥683.9B prior year to ¥449.1B, while long-term borrowings increased by ¥247.0B from ¥856.2B, indicating an extension of debt maturities and improved mismatch resilience. Current ratio was 200.4% and quick ratio 168.5%, indicating adequate liquidity.
OCF was ¥256.2B (prior year ¥120.6B, +112.5%), showing significant improvement. Subtotal (before working capital changes) was ¥334.8B, and working capital had a negative contribution of ▲¥94.2B (inventory increase ▲¥41.3B, receivables increase ▲¥11.5B, payables decrease ▲¥41.4B), suppressing cash conversion efficiency. After deducting corporate taxes paid ¥66.3B, OCF was secured at ¥256.2B. Investing cash flow was ▲¥180.8B, with principal items being capital expenditures ▲¥201.5B, proceeds from sale of fixed assets ¥8.0B, proceeds from sale of investment securities ¥47.5B, and M&A-related outflows ▲¥18.2B. FCF was positive at ¥75.4B (OCF ¥256.2B + Investing CF ▲¥180.8B), maintaining a level sufficient to cover capex and dividends. Financing cash flow was ▲¥97.7B, reflecting net decrease in short-term borrowings ▲¥241.9B and net increase in long-term borrowings ¥203.5B (borrowings ¥350.6B − repayments ¥146.1B), advancing debt lengthening. Dividend payments totaled ¥46.6B (parent dividends ¥46.5B + non-controlling interests ¥5.5B), and FCF coverage was 1.62x, a sustainable level. Cash and cash equivalents were ¥331.2B (prior year ¥346.9B, decrease ▲¥15.7B), including foreign exchange effects ¥5.0B. Depreciation ¥209.5B accounted for 82% of OCF, confirming an investment stance that offsets asset aging. If working capital optimization (DSO shortening, inventory reduction) advances, there is substantial room to improve OCF/EBITDA and further enhance financial flexibility.
Operating income ¥256.3B vs. ordinary income ¥236.5B shows a gap of ▲¥19.8B, indicating non-operating expenses weighed on profit. The main causes were interest expense ¥22.9B (up ¥4.4B from ¥18.5B prior year) and equity-method investment losses ¥6.1B (vs. ¥5.0B profit prior year, an ¥11.1B deterioration). Dividend income ¥4.9B and interest income ¥2.6B totaling ¥7.5B contributed positively, but overall non-operating income ¥39.8B was outweighed by non-operating expenses ¥59.6B, netting ▲¥19.8B. Extraordinary items were net +¥26.9B, with gains on sale of investment securities ¥31.5B and fixed assets ¥6.5B (total ¥38.0B) against impairment losses ¥11.1B. Extraordinary items are temporary; ordinary income better reflects underlying earning power. Comprehensive income was ¥221.9B (¥177.0B net income plus ¥44.9B other comprehensive income), with FX translation adjustments ¥21.0B, valuation differences on securities ¥7.4B, and remeasurements of retirement benefits ¥10.6B among the items boosting comprehensive income. OCF substantially exceeded net income and accruals were small, indicating good cash backing of profit overall. However, working capital increase of ▲¥94.2B pressured cash; improving working capital management remains a priority from a quality-of-earnings perspective.
For the full year ending March 2027, management forecasts revenue ¥6900.0B (YoY +17.9%), operating income ¥270.0B (YoY +5.4%), ordinary income ¥250.0B (YoY +5.7%), and net income attributable to owners of the parent ¥165.0B (YoY +5.8%), expecting revenue growth and modest profit increases. The large revenue increase is assumed to stem from volume growth, forex effects, and continued price revisions; however, the modest operating income growth suggests incorporation of higher raw material and energy costs and a challenging competitive environment. Forecasted operating margin is 3.9% (¥270B ÷ ¥6900B), down ▲0.5pt from last year’s 4.4%, reflecting a conservative plan that factors in cost increases during a revenue expansion. EPS forecast is ¥268.02, dividend forecast ¥40 (interim-equivalent, midterm policy), implying a payout ratio of about 15%, below the prior year’s ~31.6%; annual dividend remains unconfirmed as this is an interim-stage outlook. Progress against the full-year forecast is high at 84.9% of revenue, 94.9% of operating income, 94.6% of ordinary income, and 94.5% of net income, indicating near-achievement. Downward/upward revision potential at the end of Q2 exists; second-half volume and price trends will be key.
Annual dividend was ¥80 (interim ¥25, year-end ¥55), with a payout ratio of 31.6% (total dividends ¥46.5B ÷ net income attributable to owners of the parent ¥155.9B), maintaining a healthy level. Prior year interim was ¥20 and no year-end data (incomparable on a full-year basis), but total dividends increased from ¥43.1B to ¥46.5B (+¥3.4B), confirming a dividend-increasing stance. FCF ¥75.4B covers total dividends ¥46.5B, with FCF coverage 1.62x — a sustainable level. OCF ¥256.2B exceeds the sum of dividends and capex ¥248.0B (dividends ¥46.5B + capex ¥201.5B), indicating sufficient funding capacity. Share buybacks were minimal; shareholder returns are effectively concentrated on dividends. Dividend forecast for FY2027 is ¥40 (midterm policy); any further increase for the full year will depend on business progress and capital allocation. If payout ratio remains in the 30% range, with forecast EPS ¥268, an annual dividend around ¥80 (payout ratio approx. 30%) can be envisaged. The policy appears to continue stable dividends while balancing cash generation.
Raw material & energy cost volatility risk: The Alumina & Chemicals, Metal Ingot segment has an operating margin of 3.7% (YoY ¥1.15B profit decline) and is low-margin; spread compression from aluminum ingot price increases or energy cost rises is evident. Interest expense ¥22.9B on interest-bearing debt ¥1552.7B (up ¥4.4B YoY from ¥18.5B) shows sensitivity to rising rates, and further increases in interest costs would pressure earnings.
Cash flow pressure risk from working capital increases: Accounts receivable ¥1178.8B and inventories ¥498.0B total ¥1676.8B, against accounts payable ¥598.7B, resulting in working capital ¥1078.1B. DSO (days sales outstanding) is about 73 days and inventory turnover days about 37 days, both elongated, contributing to a low OCF/EBITDA ratio of 0.55x. Continued demand variability or inventory buildup could weaken cash generation and reduce flexibility for investment and dividends.
Corporate margin ceiling risk from segmental profitability disparities: Foil & Powder Products margin at 6.7% contrasts with Plates & Extrusions at 3.4% and Processed Products & Related Business at 3.0%. Low-margin segments account for a high share of revenue (Plates & Extrusions ¥1667.7B and Processed Products ¥1980.1B totaling 62%), and without advancement in portfolio high value-added transformation, improving consolidated operating margin beyond 4.4% will be limited. If demand cycles weaken across key end markets such as automotive, electrical, and packaging, fixed cost absorption in low-margin businesses may deteriorate and corporate profitability could decline.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 4.4% | 7.8% (4.6%–12.3%) | -3.4pt |
| Net Margin | 3.0% | 5.2% (2.3%–8.2%) | -2.2pt |
Profitability is below the manufacturing benchmark median by ▲3.4pt on operating margin and ▲2.2pt on net margin.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 6.4% | 3.7% (-0.4%–9.3%) | +2.7pt |
Revenue growth at +6.4% exceeds the industry median +3.7%, placing the company favorably on growth.
※Source: Company compilation
The key earnings highlight is low profitability: operating margin 4.4% is 3.4pt below the manufacturing benchmark median of 7.8%. The margin disparity between high-margin Foil & Powder Products (6.7%) and low-margin Plates & Extrusions (3.4%) determines the corporate margin ceiling; portfolio upgrading to higher value-added products and structural reforms by segment are essential to lift consolidated profitability. OCF ¥256.2B is solid, but OCF/EBITDA ratio 0.55x shows low cash conversion efficiency; optimizing working capital (shortening receivables 73 days, reducing inventory 37 days) could expand OCF and lower Debt/EBITDA 3.33x.
The lengthening of debt maturities — reducing short-term borrowings to ¥449.1B and increasing long-term borrowings to ¥1103.2B — enhances resilience to maturity mismatches and is a structural improvement. Equity ratio 48.2% and current ratio 200.4% suggest neutral financial soundness, while increased interest burden ¥22.9B (YoY +¥4.4B) signals sensitivity to rising rates. ROE 6.6% improved from 5.4% but still indicates significant room to improve capital efficiency relative to peers; raising ROIC around 4.4% will be key to enhancing shareholder value. Payout ratio 31.6% and FCF coverage 1.62x indicate sustainable shareholder returns, and potential for dividend increases tied to progress on earnings and capital allocation is contingent on results.
This report is a financial analysis document automatically generated by AI analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the company based on public financial statement data. Investment decisions are your responsibility; please consult a professional advisor as necessary.