• Q4 FY3/25 outperformed but tough FY3/26 forecast – Q4 FY3/25 earnings outperformed February 2025 revised guidance with sales rising 6.9% YoY and operating profit 14.5% YoY. The weak yen was a key factor in outperformance, compounding growth from higher-than-forecast copper and gold prices. The domestic-focused Industrial Machinery segment added to the earnings beat, thanks to underlying demand, and a rebound from the previous year’s delays in material machinery plant construction further boosted OP. Recent increases in copper and gold prices suggest upside potential to FY3/26 guidance, while heightened M&A activity signals a shift in capital allocation toward growth initiatives and portfolio enhancement.
