The Lead Co.,Inc. Q3 FY2026 Earnings Presentation

Source disclosure: February 10, 2026

The Lead Co.,Inc. [6982.T]

TOKYO — The Lead Co., Inc. reported its third quarter earnings for the fiscal year ending March 2026 on February 10, 2026. For the period from April 1, 2025 to December 31, 2025, the company saw a modest increase in sales but experienced significant declines in profitability.

Sales for the third quarter of the fiscal year 2026 were JPY 3,257 million, marking a 5.2% rise compared to the same period last year when they stood at JPY 3,097 million. However, operating income, ordinary income, and net income all showed negative figures. Operating income was JPY -245 million, down from JPY -104 million in the previous year's corresponding period. Similarly, ordinary income fell to JPY -205 million from JPY -51 million, while net income dropped to JPY -218 million from JPY -93 million over the same timeframe. On a per-share basis, the net loss per share increased to JPY -84.52 from JPY -36.25 in the prior-year period.

Regarding the financial position as of the end of the third quarter, total assets amounted to JPY 8,919 million, up from JPY 7,882 million in the comparable period last year. Equity decreased slightly to JPY 2,540 million from JPY 2,600 million, leading to a reduction in the equity ratio to 28.5%, down from 33.0%. Despite this decline, the company maintained a relatively strong capital structure.

The dividend policy remained unchanged, with no dividends paid during the first two quarters of the current fiscal year. The company plans to pay an annual dividend of JPY 10.00 per share by the end of the fiscal year, consistent with the previous year’s payout. No adjustments have been made to the dividend forecast since it was initially announced.

Looking ahead, the company forecasts full-year sales to reach JPY 5,000 million, representing a 19.4% increase from the previous fiscal year. However, the outlook for profitability is less optimistic, with expected operating income, ordinary income, and net income declining further to JPY -120 million, JPY -80 million, and JPY -90 million respectively. This would result in a diluted earnings per share of JPY -34.75, reflecting a challenging business environment. These projections remain unaltered from recent announcements.

The company has not applied any unique accounting treatments for interim financial statements nor changed its accounting policies or estimates. It continues to adhere to established practices without revisions due to changes in accounting standards. Additionally, there have been no material changes in the number of issued shares, with the outstanding share count remaining stable at approximately 2.63 million shares throughout the periods under review.

These results highlight ongoing challenges in achieving sustained profitability despite growth in revenue, underscoring the need for strategic adjustments moving forward. Investors should note that future performance may vary significantly based on various factors beyond the company's control. Further qualitative information regarding these trends can be found in the attached documents.

Note: Financial figures from the earnings presentation have been removed pending correction. For accurate figures, refer to the company's earnings summary (kessan tanshin) filed separately on TDNet.