Hephaist Reports Special Loss Due to Asset Impairment; Revises FY26 Outlook

TOKYO, May 15 (Pulse News Wire) – Hephaist CO.,LTD. (6433.T) reported a special loss of ¥413 million due to asset impairment for its fiscal year ending March 31, 2026.

The impairment charge was based on the reassessment of future recoverability of production equipment within the current business environment, leading to a reduction in depreciation expenses by approximately ¥60 million for the next fiscal year. In addition, the company revised its full-year consolidated earnings forecast. Previously announced estimates showed revenue of 1,603 million yen, operating profit of -216 million yen, ordinary profit of -295 million yen, and net income attributable to shareholders of -54.61 million yen per share. However, the latest results indicate revenue of 1,636 million yen, operating profit of -262 million yen, ordinary profit of -299 million yen, and net income attributable to shareholders of -115.18 million yen per share, marking a significant deviation from earlier projections.

The discrepancy stems from higher raw material costs and logistics expenses, which increased manufacturing costs. Additionally, the asset impairment charges led to a substantial shortfall compared to previous forecasts. Despite improved sales performance driven by recovery in direct machinery sales, the overall impact on profitability was negative. HEPHAIST stated it would focus on cost reductions and productivity improvements moving forward.