Interim report
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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under Japanese GAAP ) August 7 , 2026 Company name : Kurabo Industries Ltd. Listing : Tokyo Stock Exchange Securities code : 3106 URL : https://www.kurabo.co.jp/ Representative : Inquiries : Telephone : Shinji Nishigaki , President Kiyoshi Hamaguchi , Executive Officer , Manager of Finance & Accounting Department + 81-6-6266-5188 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : None None ( Yen amounts are rounded down to millions , unless otherwise noted . ) 1. Consolidated financial results for the three months ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) Net sales Operating profit ( Percentages Ordinary profit indicate year - on - year changes . ) Profit attributable to owners of parent Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30 , 2026 June 30 , 2025 37,620 35,744 5.2 ( 0.4 ) 2,852 2,159 32.1 4.4 3,881 28.4 3,796 ( 26.7 ) 3,023 3.9 5,178 167.1 Note : Comprehensive income For the three months ended June 30 , 2026 : For the three months ended June 30 , 2025 : ¥ 7,661 million ¥ 3,344 million [ ( 44.0 ) % ] [ 129.1 % ] Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30 , 2026 June 30 , 2025 238.68 307.84 ( 2 ) Consolidated financial position As of June 30 , 2026 March 31 , 2026 Reference : Total assets Net assets Equity - to - asset ratio Millions of yen 207,149 201,844 Millions of yen % 136,948 133,674 65.4 65.5 Equity As of June 30 , 2026 : As of March 31 , 2026 : ¥ 135,513 million ¥ 132,193 million
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2. Cash dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 – 141.00 – 166.00 307.00 Fiscal year ending March 31, 2027 – Fiscal year ending March 31, 2027 (Forecast) 166.00 – 33.00 – Notes: 1. Revisions to the forecast of cash dividends most recently announced: None 2. The Company plans to conduct a 5-for-1 stock split of its common shares with the effective date of October 1, 2026. The fiscal year-end dividend per share for the fiscal year ending March 31, 2027 (forecast) shows the amount that takes into account the effect of the stock split, and the total annual dividend is shown as “–.” Without taking into account the stock split, the fiscal year-end dividend for the fiscal year ending March 31, 2027 (forecast) would be ¥165.00 and the total annual dividends would be ¥331.00. 3. Forecast of consolidated financial results for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Six months ending September 30, 2026 76,000 9.8 4,600 17.1 5,600 15.6 7,300 13.7 92.01 Full year 160,000 11.3 12,000 30.7 13,300 20.1 14,800 14.9 186.80 Notes: 1. Revisions to the forecast of financial results most recently announced: Yes 2. The forecasted values in basic earnings per share take into account the effect of the stock split described in the notes under “2. Cash dividends.” Without taking into account the stock split, the forecasted basic earnings per share would be ¥460.04 for the six months ending September 30, 2026, and ¥934.00 for the full year.
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* Notes (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes Note: For the details, please refer to “2. Quarterly consolidated financial statements and significant notes thereto (3) Notes to quarterly consolidated financial statements (Notes to accounting treatment specific to the preparation of quarterly consolidated financial statements)” on page 8 of the attached materials. (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 17,000,000 shares As of March 31, 2026 17,000,000 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 1,180,398 shares As of March 31, 2026 1,009,008 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 15,904,743 shares Three months ended June 30, 2025 16,822,428 shares Note: The Company has introduced the Board Benefit Trust, a share-based compensation plan for directors, etc. using a trust, and the Company’s shares held by the trust account are included in the number of treasury shares. * Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit corporation: None * Proper use of earnings forecasts, and other special matters (Caution regarding forward-looking statements and others) The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, the statements herein do not constitute assurances regarding the Company’s actual results. Actual financial and other results may differ substantially from the statements herein due to various factors. For matters regarding the above earnings forecasts, please refer to “1. Overview of operating results and others (3) Explanation of consolidated financial results forecasts and other forward-looking statements” on page 3 of the attached materials.
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- 1 - Attached Material 1. Overview of operating results and others ............................................................................................................ 2 (1) Overview of operating results for the period under review .......................................................................... 2 (2) Overview of financial position for the period under review ......................................................................... 3 (3) Explanation of consolidated financial results forecasts and other forward-looking statements ................... 3 2. Quarterly consolidated financial statements and significant notes thereto .......................................................... 4 (1) Quarterly consolidated balance sheet ............................................................................................................ 4 (2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income .......................................................................................................................................................... 6 Quarterly consolidated statement of income ................................................................................................. 6 Quarterly consolidated statement of comprehensive income........................................................................ 7 (3) Notes to quarterly consolidated financial statements .................................................................................... 8 (Notes on premise of going concern) ............................................................................................................ 8 (Notes to accounting treatment specific to the preparation of quarterly consolidated financial statements) 8 (Notes on quarterly consolidated balance sheet)........................................................................................... 8 (Notes on quarterly consolidated statement of cash flows) .......................................................................... 9 (Notes on significant changes in the amount of shareholders’ equity) ......................................................... 9 (Notes on segment information, etc.) .......................................................................................................... 10 (Notes on revenue recognition) ....................................................................................................................11
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- 2 - 1. Overview of operating results and others (1) Overview of operating results for the period under review During the first three months of the fiscal year ending March 31, 2027 (from April 1, 2026 to June 30, 2026), the Japanese economy remained on a moderate recovery trend, supported by improvement in consumer spending driven by improvements in the employment and income environment, as well as solid corporate profits and capital investment. On the other hand, the outlook for the economy remains uncertain due to widening geopolitical risks, such as growing tensions in the Middle East, leading to sharp increases in resource prices and supply constraints. Additionally, deepening labor shortages, rising inflationary pressures caused by the continued depreciation of the yen and rising wages, and other factors are also contributing to this uncertainty. In this type of environment, the Group has strived to expand the priority businesses by targeting the semiconductor production-related market and other growth markets, and to enhance the earning capability of the core businesses such as the textiles business, based on the basic policy of “enhance corporate value by accelerating the growth of high-profit businesses and efficiently utilizing management resources” in the medium-term management plan “Accelerate ’27,” which started in April 2025. As a result, net sales were ¥37.6 billion (up 5.2% YoY), operating profit was ¥2.85 billion (up 32.1% YoY), ordinary profit was ¥3.88 billion (up 28.4% YoY), and profit attributable to owners of parent was ¥3.79 billion (down 26.7% YoY). Results by segment are as follows. (Chemical Products) High-performance plastic products experienced an increase in revenue due to strong orders mainly for semiconductor production equipment. This was against a backdrop of the further acceleration of investments in data centers driven by the proliferation of generative AI, along with the rapid expansion of the memory market. Functional films experienced an increase in revenue due to strong orders for solar cells and semiconductor manufacturing processes. Industrial materials experienced increased revenue due to steady orders of flexible polyurethane foam for automotive interiors, heat-insulating materials and nonwoven fabrics for automotive filters. The Group also carried out the price pass-through for rising raw material costs. As a result, net sales were ¥18.5 billion (up 22.5% YoY) with operating profit of ¥1.86 billion (up 132.7% YoY). (Textiles) Yarns experienced decreased revenue due to a decline in its sales for knit products at an Indonesian subsidiary. Uniforms experienced increased revenue due to the solid performance of flame-retardant materials such as “BREV ANO,” along with the acquisition of new customers for the risk reduction management system “Smartfit” designed for hot environments, although the Indonesian subsidiary withdrew from fabric sales as part of the structural reform. Casual clothing experienced decreased revenue as orders of products for domestic SPAs (specialty retailers of private label apparel) decreased. As a result, net sales were ¥9.8 billion (down 16.5% YoY) with operating loss of ¥0.21 billion (operating loss of ¥0.25 billion in the same period of the previous fiscal year). (Advanced Technology) Life science & technology businesses experienced increased revenue with steady performance from factory automation equipment, and in the bio-related products segment, mixer/deaerator models, contracted gene analysis services and other products also showed solid performance. Electronics businesses experienced decreased revenue despite solid performance for chemical concentration meters for the semiconductor production lines, as sales decreased for film thickness meters and infrastructure management systems.
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- 3 - Engineering businesses experienced increased revenue due to steady performances in areas such as plant and facility construction and semiconductor production-related equipment, as well as solid sales for exhaust gas treatment facilities. As a result, net sales were ¥5.5 billion (up 5.4% YoY), while operating profit was ¥0.71 billion (down 37.8% YoY) mainly due to a decrease in high-margin products. (Food and Services) Freeze-dried foods experienced increased revenue mainly due to solid performance of instant noodle ingredients and molded soups. Hotels and their related services experienced increased revenue due to steady performance for accommodations, restaurants, and other services, fueled by demand from domestic travel and inbound tourism. As a result, net sales were ¥2.6 billion (up 5.2% YoY) with operating profit of ¥0.16 billion (up 21.9% YoY). (Real Estate) In real estate leasing, net sales were ¥0.9 billion (up 0.6% YoY), while operating profit was ¥0.61 billion (up 1.3% YoY), remaining on par with the same period of the previous fiscal year. (2) Overview of financial position for the period under review (Assets, liabilities and net assets) Total assets at the end of the first quarter of the fiscal year ending March 31, 2027 increased by ¥5.3 billion from the end of the previous fiscal year to ¥207.1 billion mainly due to an increase in investment securities, although there was a decrease in notes and accounts receivable - trade, and contract assets. Liabilities increased by ¥2.0 billion from the end of the previous fiscal year to ¥70.2 billion mainly due to increases in deferred tax liabilities included in “other” under non-current liabilities and notes and accounts payable - trade, although there was a decrease in income taxes payable. Net assets increased by ¥3.2 billion from the end of the previous fiscal year to ¥136.9 billion mainly due to increases in valuation difference on available-for-sale securities and retained earnings, although there was a decrease due to purchase of treasury shares. As a result of the above, the equity-to-asset ratio was 65.4%, down 0.1 percentage points. (3) Explanation of consolidated financial results forecasts and other forward-looking statements Regarding the consolidated financial results forecasts for the second quarter (cumulative) (April 1, 2026 to September 30, 2026) and for the full year (April 1, 2026 to March 31, 2027), based on recent trends in financial results, we have revised our financial results forecasts announced on May 14, 2026. For the details, please refer to the “Notification on Revisions to Financial Results Forecasts” separately disclosed today.
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- 4 - 2. Quarterly consolidated financial statements and significant notes thereto (1) Quarterly consolidated balance sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 15,533 14,770 Notes and accounts receivable - trade, and contract assets 28,288 26,804 Electronically recorded monetary claims - operating 7,910 8,450 Merchandise and finished goods 12,004 12,572 Work in process 6,506 6,999 Raw materials and supplies 8,446 9,057 Other 3,944 4,770 Allowance for doubtful accounts (138) (42) Total current assets 82,496 83,383 Non-current assets Property, plant and equipment Buildings and structures, net 21,062 20,782 Other, net 23,571 23,759 Total property, plant and equipment 44,633 44,541 Intangible assets 1,427 1,352 Investments and other assets Investment securities 69,523 74,092 Other 3,994 4,130 Allowance for doubtful accounts (230) (351) Total investments and other assets 73,287 77,872 Total non-current assets 119,348 123,765 Total assets 201,844 207,149 Liabilities Current liabilities Notes and accounts payable - trade 15,208 16,494 Electronically recorded obligations - operating 2,144 2,054 Short-term borrowings 6,086 7,038 Income taxes payable 3,581 2,175 Provision for bonuses 1,511 586 Other 7,825 9,028 Total current liabilities 36,357 37,378 Non-current liabilities Long-term borrowings 886 352 Provision for retirement benefits for directors (and other officers) 135 142 Provision for share-based payments 277 304 Retirement benefit liability 10,700 10,643 Other 19,813 21,379 Total non-current liabilities 31,812 32,822 Total liabilities 68,170 70,200
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- 5 - (Millions of yen) As of March 31, 2026 As of June 30, 2026 Net assets Shareholders’ equity Share capital 22,040 22,040 Capital surplus 15,240 15,240 Retained earnings 70,568 71,678 Treasury shares (5,948) (7,629) Total shareholders’ equity 101,900 101,329 Accumulated other comprehensive income Valuation difference on available-for-sale securities 35,779 39,425 Deferred gains or losses on hedges 41 52 Foreign currency translation adjustment (6,049) (5,824) Remeasurements of defined benefit plans 521 530 Total accumulated other comprehensive income 30,292 34,183 Non-controlling interests 1,481 1,435 Total net assets 133,674 136,948 Total liabilities and net assets 201,844 207,149
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- 6 - (2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income Quarterly consolidated statement of income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 35,744 37,620 Cost of sales 28,222 29,175 Gross profit 7,521 8,445 Selling, general and administrative expenses 5,362 5,593 Operating profit 2,159 2,852 Non-operating income Interest income 45 27 Dividend income 896 1,094 Other 59 56 Total non-operating income 1,000 1,177 Non-operating expenses Interest expenses 56 45 Share of loss of entities accounted for using equity method 4 3 Expenses on inactive non-current assets 3 47 Other 71 52 Total non-operating expenses 136 148 Ordinary profit 3,023 3,881 Extraordinary income Gain on sale of investment securities 4,337 2,086 Total extraordinary income 4,337 2,086 Extraordinary losses Loss on disposal of non-current assets – 126 Impairment losses – 25 Total extraordinary losses – 151 Profit before income taxes 7,361 5,816 Income taxes 2,167 2,017 Profit 5,193 3,798 Profit attributable to non-controlling interests 15 2 Profit attributable to owners of parent 5,178 3,796
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- 7 - Quarterly consolidated statement of comprehensive income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 5,193 3,798 Other comprehensive income Valuation difference on available-for-sale securities (1,422) 3,645 Deferred gains or losses on hedges (10) 11 Foreign currency translation adjustment (402) 208 Remeasurements of defined benefit plans, net of tax 11 8 Share of other comprehensive income of entities accounted for using equity method (24) (11) Total other comprehensive income (1,849) 3,862 Comprehensive income 3,344 7,661 Comprehensive income attributable to Comprehensive income attributable to owners of parent 3,399 7,686 Comprehensive income attributable to non-controlling interests (54) (24)
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- 8 - (3) Notes to quarterly consolidated financial statements (Notes on premise of going concern) Not applicable. (Notes to accounting treatment specific to the preparation of quarterly consolidated financial statements) (Calculation of cost of tax) The effective tax rate after applying the accounting effect of taxes on profit before taxes for the fiscal year including the quarter under review is reasonably estimated, and profit before taxes is multiplied by the estimated effective tax rate to calculate cost of tax. However, if the calculation of the cost of tax using the estimated effective tax rate results in significantly unreasonable results, the effective statutory tax rate is used. (Notes on quarterly consolidated balance sheet) Contingent liabilities On June 30, 2022, a fire broke out at the logistics facility Ami No. 2 Logistics Center of SBS Flec Co., Ltd. (location: 6-1 Hoshinosato, Ami-machi, Inashiki-gun, Ibaraki) at which the Company’s Chemical Products Division had conducted heat-insulating work. The fire was extinguished on July 5, 2022. Regarding this fire accident (hereinafter the “Fire Accident”), on September 6, 2023, SBS Flec Co., Ltd. filed a lawsuit seeking compensation for damages against three companies related to the Fire Accident, including the Company, for around ¥4.4 billion in damages concerning entrusted cargo, etc. that perished, and on October 24, 2024, there was an application for amending the damages claim to around ¥4.0 billion. In addition, on March 31, 2025, Sompo Japan Insurance Inc. filed a lawsuit seeking compensation for damages against three companies related to the Fire Accident, including the Company, for around ¥3.6 billion in damages based on insurance subrogation for damages concerning buildings and other assets that were destroyed or damaged by the Fire Accident (hereinafter the “Lawsuit”). The Company had previously announced that in relation to the fact that SBS Flec Co., Ltd., the owner of the logistics facility involved, had received an insurance payment of approximately ¥5.2 billion from an insurance company for damages related to buildings and other assets destroyed or damaged by the Fire Accident, there was a possibility of the Company being pursued for recovery by that insurance company. The Lawsuit was filed on the grounds that Sompo Japan Insurance Inc. acquired part of SBS Flec Co., Ltd.’s right to claim damages related to the Fire Accident through subrogation, after SBS Flec Co., Ltd. received an insurance payment based on a jointly underwritten insurance policy with Sompo Japan Insurance Inc. and others for the buildings and assets affected by the Fire Accident. The Company has evaluated the details of these claims in these lawsuits seeking compensation for damages and is responding as appropriate through our attorneys. Based on the jointly underwritten insurance policy entered into by SBS Flec Co., Ltd. and other insurance companies, there is a possibility that the Company will also be pursued for recovery by other insurance companies. Furthermore, related to the Fire Accident, for around ¥1.1 billion initially estimated for the demolition costs for the Ami No. 2 Logistics Center, we received a notification from the relevant companies that around ¥0.68 billion in costs had been incurred at the end of April 2023. Depending on the future proceedings of the lawsuits for compensation for damages and the results of discussion, the Company could incur damages. (Notes on additional information) We believe that the incurrence of damages to the Company related to the lawsuits for compensation for damages as well as the impact on earnings will become clear as a result of the future proceedings of the lawsuits for compensation for damages and the results of discussion, and the details and amounts of any damages to the Company from the Fire Accident have not been determined at this point in time. The Company will announce any specific impact on earnings in the future as soon as it becomes clear.
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- 9 - (Notes on quarterly consolidated statement of cash flows) Quarterly consolidated statement of cash flows is not prepared for the three months ended June 30, 2026. Depreciation (including amortization of intangible assets) for three months ended June 30, 2025 and 2026 is as follows: (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Depreciation 1,211 1,232 (Notes on significant changes in the amount of shareholders’ equity) (Purchase of treasury shares) Based on the resolution of the board of directors meeting held on November 11, 2025, the Company acquired 171 thousand shares of treasury shares. As a result, treasury shares were ¥7,629 million as of June 30, 2026, following an increase in treasury shares of ¥1,679 million during the three months ended June 30, 2026.
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- 10 - (Notes on segment information, etc.) [Segment information] I Three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025) 1. Information on the amounts of sales and profit or loss by reportable segment (Millions of yen) Reportable segments Adjustments (Note 1) Amount recorded in the quarterly consolidated statement of income (Note 2) Chemical Products Textiles Advanced Technology Food and Services Real Estate Total Sales Sales to outside customers 15,127 11,842 5,306 2,490 978 35,744 – 35,744 Intersegment sales or transfers 4 11 269 12 108 407 (407) – Total 15,131 11,854 5,575 2,502 1,087 36,151 (407) 35,744 Segment profit (loss) 800 (259) 1,154 135 609 2,440 (281) 2,159 (Notes) 1. The segment profit or loss adjustment of negative ¥281 million includes company-wide expenses of negative ¥264 million and other adjustments of negative ¥16 million. Company-wide expenses are mainly R&D expenses not attributable to the reportable segment. 2. Segment profit or loss is adjusted with operating profit in the quarterly consolidated statement of income. 2. Information about impairment losses of non-current assets and goodwill by reportable segment Not applicable. II Three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) 1. Information on the amounts of sales and profit or loss by reportable segment (Millions of yen) Reportable segments Adjustments (Note 1) Amount recorded in the quarterly consolidated statement of income (Note 2) Chemical Products Textiles Advanced Technology Food and Services Real Estate Total Sales Sales to outside customers 18,532 9,893 5,591 2,619 984 37,620 – 37,620 Intersegment sales or transfers 29 14 92 12 109 258 (258) – Total 18,562 9,907 5,684 2,631 1,093 37,879 (258) 37,620 Segment profit (loss) 1,863 (212) 717 164 616 3,150 (297) 2,852 (Notes) 1. The segment profit or loss adjustment of negative ¥297 million includes company-wide expenses of negative ¥309 million and other adjustments of ¥12 million. Company-wide expenses are mainly R&D expenses not attributable to the reportable segment. 2. Segment profit or loss is adjusted with operating profit in the quarterly consolidated statement of income. 2. Information about impairment losses of non-current assets and goodwill by reportable segment The information is omitted as it is immaterial.
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- 11 - (Notes on revenue recognition) Information on disaggregation of revenue from contracts with customers [Breakdown by type of goods or services] Three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025) (Millions of yen) Reportable segments Total Chemical Products Textiles Advanced Technology Food and Services Real Estate High-performance plastic products 3,720 – – – – 3,720 Functional films 2,405 – – – – 2,405 Industrial materials 10,577 – – – – 10,577 Yarns – 4,981 – – – 4,981 Uniforms – 2,636 – – – 2,636 Casual clothing – 5,440 – – – 5,440 Life science & technology businesses – – 897 – – 897 Electronics businesses – – 2,063 – – 2,063 Engineering businesses – – 2,958 – – 2,958 Freeze-dried foods – – – 1,719 – 1,719 Services – – – 783 – 783 Intersegment sales (1,575) (1,216) (612) (12) – (3,418) Revenue from contracts with customers 15,127 11,842 5,306 2,490 – 34,766 Other revenue – – – – 978 978 Sales to outside customers 15,127 11,842 5,306 2,490 978 35,744
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- 12 - Three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) (Millions of yen) Reportable segments Total Chemical Products Textiles Advanced Technology Food and Services Real Estate High-performance plastic products 5,676 – – – – 5,676 Functional films 3,055 – – – – 3,055 Industrial materials 11,524 – – – – 11,524 Yarns – 4,499 – – – 4,499 Uniforms – 2,655 – – – 2,655 Casual clothing – 4,504 – – – 4,504 Life science & technology businesses – – 1,052 – – 1,052 Electronics businesses – – 1,700 – – 1,700 Engineering businesses – – 3,171 – – 3,171 Freeze-dried foods – – – 1,796 – 1,796 Services – – – 835 – 835 Intersegment sales (1,724) (1,766) (333) (12) – (3,837) Revenue from contracts with customers 18,532 9,893 5,591 2,619 – 36,636 Other revenue – – – – 984 984 Sales to outside customers 18,532 9,893 5,591 2,619 984 37,620