Financial Analysis

Operating results

The business environment surrounding the Group during the fiscal year ended March 31, 2026 remained uncertain, driven by the impact of U.S. tariff policies and escalating tensions in the Middle East.
Under these circumstances, consolidated revenue for the fiscal year under review reached ¥437,372 million (up 10.3% year-on-year). Although the resolution of the order backlog was delayed due to construction delays at customer factories, performance was bolstered by contributions from M&A activities and buoyant demand for data center investments fueled by the widespread adoption of AI.
Conversely, operating profit declined 8.7% year-on-year to ¥44,798 million, and profit attributable to owners of parent fell 5.7% year-on-year to ¥30,554 million. These decreases were primarily attributable to cost pressures in existing businesses, including higher U.S. tariffs and rising labor expenses.

Financial position

Total assets as of March 31, 2026 stood at 772,109 million yen, an increase of 122,217 million yen compared to the end of the previous fiscal year. Current assets increased by 83,523 million yen to 498,034 million yen, driven by higher cash and deposits as well as inventories following the expansion of the scope of consolidation through corporate acquisitions. Non-current assets rose by 38,694 million yen to 274,074 million yen, reflecting the recognition of intangible assets, including goodwill and customer-related assets, associated with two newly consolidated subsidiaries.
Liabilities increased by 105,609 million yen from the end of the previous fiscal year to 231,751 million yen, mainly due to an increase in borrowings raised to acquire shares of Via Mechanics, Ltd. Equity grew by 16,608 million yen to 540,358 million yen, primarily owing to an increase in retained earnings and foreign currency translation adjustments resulting from the depreciation of the yen at the fiscal year-end. Consequently, the ratio of equity attributable to owners of parent decreased by 10.5 percentage points from 79.9% at the end of the previous fiscal year to 69.4%.

Cash flows

Cash and cash equivalents as of March 31, 2026 totaled 153,626 million yen, an increase of 48,785 million yen from March 31, 2025.

Cash flows from operating activities

Net cash provided by operating activities was 58,065 million yen (compared to an inflow of 46,192 million yen in the previous fiscal year). This outcome was primarily supported by profit before tax and depreciation and amortization, alongside disciplined working capital management in existing businesses, such as controlling inventory growth and advancing the collection of trade receivables.

Cash flows from investing activities

Net cash used in investing activities was 25,168 million yen (compared to net cash provided of 7,851 million yen in the previous fiscal year). This was mainly attributable to strategic capital deployment, including the acquisition of subsidiaries through M&A.

Cash flows from financing activities

Net cash provided by financing activities was 13,741 million yen (compared to net cash used of 42,420 million yen in the previous fiscal year), largely driven by an increase in short-term borrowings funding the acquisition of shares of Via Mechanics, Ltd.