TOKYO, May 15 (Pulse News Wire) – Howa Machinery,ltd. (6203.T) reported its fiscal year 2026 results for the period ending March 31, 2026, which showed higher-than-expected performance compared to previous forecasts.
The company also recorded a special loss due to the dissolution of its subsidiary in Tianjin, China. In particular, the company's consolidated sales for the fiscal year ended March 31, 2026, increased by ¥864 million from the previously announced forecast, reaching ¥24.06 billion. Operating profit rose by 77%, ordinary profit by 72.8%, and net income per share surged by 208.8%. Despite recording a special loss of ¥112 million related to the dissolution of its Chinese subsidiary, the overall profitability improved significantly due to increased revenues and cost efficiencies across various divisions.
The company attributed the positive variance primarily to higher sales in machinery manufacturing, defense equipment parts, and acoustic window products. Additionally, improvements in operational efficiency contributed to enhanced earnings in the construction materials sector. However, the special loss was mainly due to severance payments, relocation expenses, and inventory disposal costs associated with the subsidiary’s liquidation. This report highlights Howa Machinery's resilience and strategic adjustments amid challenging conditions, reflecting a robust performance despite unexpected losses.
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