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 . FASF Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2027 [ Japanese GAAP ] August 7 , 2026 Company Name Code Number 6247 HISAKA WORKS , LTD . Listing Tokyo Stock Exchange Representative ( Title ) Contact ( Title ) Scheduled Date for Dividend Payment : URL https://www.hisaka.co.jp Director , President and CEO ( Name ) Toshiya Usami Director , Senior Executive Officer , Management , Corporate Strategy , IR Fields ( Name ) Hiroshi Hatano TEL + 81- ( 0 ) 6-6363-0015 Preparation of supplementary materials for financial results : Yes Financial results briefing : No ( Amounts are rounded down to the nearest million yen ) 1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ended March 31 2027 ( From April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated Operating Results ( Cumulative ) ( Percentages indicate year - on - year changes ) Profit attributable to Net Sales Operating profit Ordinary profit owners of parent Millions of Yen % Millions of Yen % Millions of Yen % Millions of Yen % First Quarter of Fiscal 2027 First Quarter of Fiscal 2026 10,211 9,456 8.0 798 35.9 1,101 42.1 848 48.1 26.6 587 34.7 775 10.0 572 25.8 ( Note ) Comprehensive Income First Quarter of Fiscal 2027 1,804 Millions of Yen ( 77.1 % ) First Quarter of Fiscal 2026 1,018 Millions of Yen ( 7.6 % ) First Quarter of Fiscal 2027 First Quarter of Fiscal 2026 ( 2 ) Consolidated Financial Position Per Share Fully diluted Net Profit Per Share Net Profit Yen Yen 32.25 21.19 Total Assets Net Assets Equity Ratio Net Assets per Share Millions of Yen Millions of Yen % Yen First Quarter of Fiscal 2027 Year ended March 31 , 2026 83,072 83,082 64,350 63,280 77.2 75.9 2,437.48 2,397.55 ( Reference ) Equity Capital First Quarter of Fiscal 2027 64,090 Millions of Yen Year Ended March 63,041 31,2026 Millions of Yen 2. Dividends Year ended March 31 , 2026 Year ended March 31 , 2027 Fiscal year ending March 2027 ( Forecast ) Annual dividends per share End of First Quarter End of Second Quarter End of Third Quarter Term - End Total Yen Yen 27.00 Yen Yen Yen 28.00 55.00 27.00 ( Note ) Revision of dividend forecast from the most recently announced forecast : No 3. Consolidated Forecast for the Fiscal Year Ending March 31,2027 ( From April 1,2026 to March 31 , 2027 ) Second Quarter ( Cumulative ) Full Year 28.00 55.00 ( Percentages indicate year - on - year changes ) Profit attributable to Net Sales Operating profit Ordinary profit Earnings per share Millions of % Yen Millions of Yen Millions of owners of parent Millions of % % % Yen Yen Yen 22,000 44,000 0.5 A2.0 1,700 A6.7 1,900 Δ1.5 1,240 Δ12.6 47.16 3,300 A0.1 3,600 A0.6 2,410 A30.1 91.66 ( Note ) Revision of business forecast from the most recently announced forecast : No
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* Notes to Consolidated Financial Statement (1) Changes of important subsidiaries during the period: No Newly included: - companies (company names), Excluded: - companies (company names) (2) Application of particular accounts procedures to the preparation of quarterly consolidated financial statements: No (3) Changes in accounting policies, and changes or restatement of accounting estimates (1) Changes in accounting policies caused by revision of accounting standards: No (2) Changes in accounting policies other than (1): No (3) Changes in accounting estimates: No (4) Restatements: No (4) Number of Shares outstanding (common stock) (1) Number of shares outstanding at the end of the period (including treasury stock) 1Q for the Year Ended March 31,2027 28,732,800 shares Year Ended March 31, 2026 28,732,800 shares (2) Number of treasury stock at the end of the period 1Q for the Year Ended March 31,2027 2,438,887 shares Year Ended March 31, 2026 2,438,867 shares (3) Average number of shares outstanding (quarterly consolidated cumulative period) 1Q for the Year Ended March 31,2027 26,293,925 shares 1Q for the Year Ended March 31,2026 27,033,529 shares * Review by certified public accountants or audit firm of the attached quarterly consolidated financial statements: No * Explanation and other special notes concerning the appropriate use of business performance forecasts (Caution regarding forward-looking statements) The forward-looking statements such as result forecasts included in this document are based on the information available to the Company at the time of the announcement and on certain assumptions considered reasonable, and the Company makes no representations as to their achievability. Actual results may differ materially from the forecast depending on a range of factors . For the assumptions underlying the business forecast and notes on the use of business forecasts, please refer to "(3) Explanation of forward-looking information such as consolidated business forecasts" in "1. Qualitative Information Concerning Quarterly Results" on page 2 of the [Accompanying Materials]. (How to obtain supplementary materials for financial results) The supplementary materials for financial results will be posted on our website on August 7, 2026.
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〇Accompanying Materials-Contents 1. Qualitative Information Concerning Quarterly Results 2 (1) Explanation of Operating Results 2 (2) Explanation of Financial Position 2 (3) Explanation of Forward-Looking Information such as Consolidated Business Forecasts 2 2. Quarterly Consolidated Financial Statements and Major Notes 3 (1) Quarterly Consolidated Balance Sheets 3 (2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement s of Comprehensive Income 5 Quarterly Consolidated Statements of Income 5 Quarterly Consolidated Statements of Comprehensive Income 6 (3) Notes to Quarterly Consolidated Financial Statements 7 (Notes on Going Concern Assumption) 7 (Notes on Substantial Changes in the Amount of Shareholders' Equity) 7 (Notes to Quarterly Consolidated Statement of Cash Flows) 7 (Notes on Segment Information, etc.) 8 (Significant Subsequent Events) 9 3. Additional Information (IR Information) 10 (1) Net Sales by Segment 10 (2) Orders Received and Order Backlog by Segment 10 - 1 -
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1. Qualitative Information on Quarterly Results (1) Explanation of Operating Results During the first quarter of the current fiscal year, the global economy remained unstable due to ongoing geopolitical risks a nd fluctuations in interest rates and foreign exchange rates. Meanwhile, the domestic economy faced sluggish personal consumption d ue to high prices and persistently high raw material costs resulting from the deteriorating situation in the Middle East, but corporate capital investment showed signs of recovery. Under these business conditions, the Group launched its new medium -term business plan "Challenge2028" in April 2026, putting into practice its management vision "Challenge for Climate Change." Through the provision of high-quality machinery and services that achieve "energy saving" and "labor saving," the Group is contributing to solving social issues while pursuing sustainable growth and enhancement of corporate value. As a result of these efforts, the Group's orders received during the first quarter of the current fiscal year increased by 7. 6% compared to the same period of the previous year, to 11,113 million yen. By segment, the Heat Exchanger Division saw strong performance in maintenance services both in Japan and overseas, and large orders for overseas shipbuilding contributed to increased orders received. The Process Engineering Division decreased due to a decline in pharmaceutical equipment and dyeing and finishing equipment resulting from the absence of large overseas orders recorded in the same period of the previous year, despite large orders for food equipment. The V alve Division exceeded the results of the same period of the previous year, driven by growth in the sewage treatment sector. Net sales increased 8.0% year on year to 10,211 million yen. By segment, the Heat Exchanger Division saw growth in maintenance services, but recorded a decrease in sales due to the absence of large overseas plant projects in the same period of the previous year. The Process En gineering Division recorded an increase in sales due to the delivery of multiple large orders for food equipment. The V alve Division remained flat as growth in the semiconductor sector was offset by sluggish performance in the chemical sector. In terms of profit, while fixed costs such as personnel expenses and depreciation increased, improvements in the sales mix co ntributed to operating profit increasing 35.9% year on year to 798 million yen, and ordinary income increasing 42.1% year on year to 1,101 million yen. Net income att ributable to owners of the parent increased 48.1% year on year to 848 million yen. The operating results by segment are as follows. [Unit: millions of yen / (%) percentage change from the previous year] Heat Exchanger Segment Process Engineering Segment V alve Segment Other Segment Orders received 5,280 (32.2%) 4,484(△10.9%) 1,341 (5.3%) 7(△70.7%) Net Sales 4,337( △4.2%) 4,617 (26.7%) 1,250( △0.6%) 7(△70.7%) Segment profit or loss 376 (38.1%) 295(△17.1%) 144 (56.6%) △5(*) *Segment profit for the same period of the previous year was 18 million yen (2) Explanation of Financial Position (Assets) Total assets at the end of the first quarter of the fiscal year were 83,072 million yen, a decrease of 10 million yen from 83 ,082 million yen at the end of the previous fiscal year. This was due to decreases in cash and deposits of 1,743 million yen and trade receivables of 575 million yen, which exceeded increases in investment securities of 1,343 million yen and other items. (Liability) Total liabilities at the end of the first quarter of the fiscal year were 18,722 million yen, a decrease of 1,080 million yen from 19,802 million yen at the end of the previous fiscal year. This was due to decreases in income taxes payable of 498 million yen and provision for bonuses of 387 million yen, which exceeded increases in deferred tax liabilities of 502 million yen and other items. (Net Asset) Total net assets at the end of the first quarter of the fiscal year were 64,350 million yen, an increase of 1,069 million yen from 63,280 million yen at the end of the previous fiscal year. This was due to increases in unrealized gain on available-for-sale securities of 918 million yen and net income attributable to owners of the parent of 848 million yen, which exceeded decreases from dividend payments of 736 million yen and other items. (3) Explanation of Forward-Looking Information Including Consolidated Financial Forecasts There are no changes to the consolidated earnings forecast for the fiscal year ending March 31,2027 from the forecast announced on May 15, 2026. - 2 -
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2. Quarterly Consolidated Financial Statements and Major Notes (1) Quarterly Consolidated Balance Sheets (Unit: Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 12,009 10,265 Notes receivable-trade 141 115 Accounts receivable-trade 7,639 6,927 Electronically recorded monetary claims-operating 3,930 4,092 Merchandise and finished goods 3,588 3,578 Work in process 5,940 6,471 Raw materials and supplies 2,113 2,222 Other 483 658 Allowance for doubtful accounts △13 △13 Total current assets 35,832 34,318 Non-Current assets Property, plant and equipment Buildings, net 14,747 14,541 Machinery and equipment, net 2,455 2,797 Land 6,571 6,584 Other, net 2,507 2,409 Total property, plant and equipment 26,282 26,333 Intangible assets Software 261 251 Goodwill 12 7 Other 1,429 1,516 Total intangible assets 1,704 1,775 Investments and other assets Investment securities 15,239 16,604 Net defined benefit asset 3,071 3,111 Other, net 957 935 Allowance for doubtful accounts △4 △5 Total investments and other assets 19,264 20,645 Total non-current assets 47,250 48,753 Total assets 83,082 83,072 - 3 -
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(Unit: Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current Liabilities Notes and accounts payable-trade 3,201 3,102 Electronically recorded obligations-operating 569 388 Current portion of bonds payable 1,332 1,332 Current portion of long-term borrowings 333 333 Income taxes payable 601 103 Contract liabilities 3,059 3,173 Provision for product warranties 121 130 Provision for loss on order received 356 544 Provision for bonuses 874 486 Other 1,914 1,621 Total current liabilities 12,363 11,215 Non-current liabilities Bonds payable 2,668 2,335 Long-term borrowings 666 583 Deferred tax liabilities 3,491 3,994 Provision for environmental measures 326 326 Retirement benefit liability 230 210 Other 55 56 Total non-current liabilities 7,438 7,506 Total liabilities 19,802 18,722 Net assets Shareholders' Equity Share capital 4,150 4,150 Capital surplus 5,224 5,224 Retained earnings 46,454 46,566 Treasury shares △2,627 △2,627 Total shareholders' equity 53,201 53,313 Accumulated other comprehensive income V aluation difference on available-for-sale securities 7,854 8,773 Deferred gains or losses on hedges △29 △29 Foreign currency translation adjustments 1,357 1,445 Remeasurements of defined benefit plans 657 588 Total accumulated other comprehensive income 9,839 10,777 Non-controlling interests 239 259 Total net assets 63,280 64,350 Total liabilities and net assets 83,082 83,072 - 4 -
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(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income (Quarterly Consolidated Statement of Income) (Unit:Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net Sales 9,456 10,211 Cost of Sales 7,064 7,621 Gross profit 2,391 2,590 Selling, general and administrative expenses 1,803 1,791 Operating profit 587 798 Non-operating income Interest income 5 7 Dividend income 220 263 Share op profit of entities accounted for using equity method 3 14 Foreign exchange gain - 16 Other 7 13 Total non-operating income 236 315 Non-Operating Expenses Interest expense 4 4 Loss on sale of notes receivable-trade 0 0 Foreign exchange loss 30 - Maintenance of inactive non-current asset 7 7 Other 6 0 Total non-operating expenses 49 12 Ordinary profit 775 1,101 Extraordinary Income Gain on sales of non-current Assets 0 0 Total extraordinary income 0 0 Extraordinary loss Loss on sale and retirement of non-current assets 0 0 Total extraordinary loss 0 0 Profit before income taxes 775 1,101 Income taxes - current 47 113 Income taxes - deferred 149 122 Total income taxes 197 236 Profit 578 865 Profit attributable to non-controlling interests 5 17 Profit attributable to owners of parent 572 848 - 5 -
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(Quarterly Consolidated Statement of Comprehensive Income) (Unit: Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 578 865 Other comprehensive income V aluation difference on available-for-sale securities 505 920 Deferred gains or losses on hedges 8 △0 Foreign currency translation adjustments △28 86 Remeasurements of defined benefit plans, net of tax △47 △68 Share of other comprehensive income of equities accounted for using equity method 2 1 Total other comprehensive income 440 939 Comprehensive income 1,018 1,804 Comprehensive income attributable to Comprehensive income attributable to owners of parent 1,013 1,786 Comprehensive income attributable to non-controlling interests 5 18 - 6 -
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(3) Notes to Quarterly Consolidated Financial Statements (Notes on Going Concern Assumption) Not applicable. (Notes on Substantial Changes in the Amount of Shareholders' Equity) Not applicable. (Notes on Quarterly Consolidated Statement of Cash Flows) A quarterly consolidated cash flow statement for the three months of the fiscal year under review has not been prepared. Depreciation (including amortization of intangible fixed assets excluding goodwill) and amortization of goodwill for the first three months of the fiscal year are as follows. Three months ended June 30, 2025 Three months ended June 30, 2026 Depreciation and amortization 398 million yen 474 million yen Amortization of goodwill 5 5 - 7 -
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(Notes on Segment Information) [Segment Information] I Previous first quarter (From April 1, 2025 to June 30, 2025) 1. Information on net sales and profit or loss by reportable segment (Unit: Millions of yen) Reportable segment Other (Note) Total Heat Exchanger Process Engineering V alve Total Net Sales Sales to customers 4,529 3,644 1,258 9,432 23 9,456 Segment profit 273 356 92 721 18 740 (Note) The "Other" includes business segments not included in reportable segments, such as the power generation business. 2. Difference between the sum of reportable segment profits and losses and operating income in quarterly consolidated statements of income, and major factors in the difference (matters concerning difference adjustment) (Unit: Millions of yen) Profit Amount Reportable segments total 721 Profit in the "Other" segment 18 Amortization of goodwill △5 Company-wide expenses (Note) △77 Adjustment for inventories 1 Other adjustments △70 Operating profit in the quarterly consolidated statement of income 587 (Note) Company-wide expenses are mainly general and administrative expenses and research and development expenses not attributable to reportable segments. 3. Information on impairment loss on noncurrent assets and goodwill by reportable segment (Significant impairment loss on fixed assets) Not applicable. (Significant gain on negative goodwill) Not applicable. - 8 -
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II Current first quarter (From April 1, 2026 to June 30, 2026) 1. Information on net sales and profits or losses by reportable segment (Unit: Millions of yen) Reportable segment Other (Note) Total Heat Exchanger Process Engineering V alve Total Net Sales Sales to customers 4,337 4,617 1,250 10,204 7 10,211 Segment profit or loss (△) 376 295 144 817 △5 811 (Note) "Other" includes business segments not included in reportable segments, such as the power generation business. 2. Difference between the sum of reportable segment profits and losses and operating income in quarterly consolidated statement of income, and ma jor factors in the difference (matters concerning difference adjustment) (Unit: Millions of yen) Profit Amount Reportable segments total 817 Profit from "Other" segment △5 Amortization of goodwill △5 Company-wide expenses (Note) △38 Adjustment amount for inventory △8 Other adjustments 40 Operating profit in the quarterly consolidated statement of income 798 (Note) Corporate expenses are mainly general and administrative expenses and research and development expenses that are not attributable to reportable segments. 3. Information on impairment loss on noncurrent assets and goodwill by reportable segment (Significant impairment loss on noncurrent assets) There are no contingent liabilities. (Significant gain on negative goodwill) There are no contingent liabilities. (Significant Subsequent Events) Not applicable. - 9 -
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3. Additional Information (IR Information) （１）セグメント別売上高(1) Net sales by segment (Millions of yen) ( 1,647 ) ( 17.4 % ) ( 1,370 ) ( 13.5 % ) ( △277 ) ( 83.2 % ) ( 5,715 ) ( 12.7 % ) 4,529 47.9 4,337 42.5 △192 95.8 17,229 38.4 ( 157 ) ( 1.7 ) ( 1,042 ( 10.2 ) ( 884 ) ( 660.1 ) ( 3,143 ) ( 7.0 ) 3,644 38.5 4,617 45.2 972 126.7 22,405 49.9 ( 184 ) ( 1.9 ) ( 127 ) ( 1.2 ) ( △57 ) ( 68.8 ) ( 652 ) ( 1.5 ) 1,258 13.3 1,250 12.2 △7 99.4 5,183 11.5 ( - ) ( - ) ( - ) ( - ) ( - ) ( - ) ( - ) ( - ) 23 0.3 7 0.1 △16 29.3 72 0.2 ( 1,989 ) ( 21.0 ) ( 2,539 ) ( 24.9 ) ( 549 ) ( 127.6 ) ( 9,510 ) ( 21.2 ) 9,456 100.0 10,211 100.0 755 108.0 44,890 100.0 N.B. Figures in parentheses are overseas sales figures. （２）セグメント別受注高及び受注残高 (Millions of yen) ( 1,093 ) ( 10.6 % ) ( 1,913 ) ( 17.2 % ) ( 820 ) ( 175.0 % ) ( 5,397 ) ( 12.7 % ) 3,994 38.7 5,280 47.5 1,285 132.2 17,193 40.4 ( 1,547 ) ( 15.0 ) ( 1,149 ) ( 10.4 ) ( △ 398 ) ( 74.2 ) ( 3,765 ) ( 8.8 ) 5,035 48.8 4,484 40.3 △ 550 89.1 20,000 46.9 ( 128 ) ( 1.2 ) ( 88 ) ( 0.8 ) ( △ 39 ) ( 68.9 ) ( 477 ) ( 1.1 ) 1,274 12.3 1,341 12.1 67 105.3 5,324 12.5 ( - ) ( - ) ( - ) ( - ) ( - ) ( - ) ( - ) ( - ) 23 0.2 7 0.1 △ 16 29.3 72 0.2 ( 2,769 ) ( 26.8 ) ( 3,151 ) ( 28.4 ) ( 381 ) ( 113.8 ) ( 9,640 ) ( 22.6 ) 10,328 100.0 11,113 100.0 784 107.6 42,591 100.0 ( 3,511 ) ( 12.4 % ) ( 4,291 ) ( 16.5 % ) ( 780 ) ( 122.2 % ) ( 3,747 ) ( 15.0 % ) 7,059 25.0 8,501 32.8 1,441 120.4 7,558 30.2 ( 3,066 ) ( 10.9 ) ( 2,406 ) ( 9.3 ) ( △ 660 ) ( 78.5 ) ( 2,299 ) ( 9.2 ) 19,538 69.3 15,609 60.2 △ 3,928 79.9 15,742 62.9 ( 256 ) ( 0.9 ) ( 99 ) ( 0.4 ) ( △ 157 ) ( 38.6 ) ( 137 ) ( 0.5 ) 1,609 5.7 1,826 7.0 216 113.4 1,735 6.9 ( - ) ( - ) ( - ) ( - ) ( - ) ( - ) ( - ) ( - ) - - - - - - - - ( 6,834 ) ( 24.2 ) ( 6,796 ) ( 26.2 ) ( △ 37 ) ( 99.4 ) ( 6,184 ) ( 24.7 ) 28,207 100.0 25,937 100.0 △ 2,270 92.0 25,036 100.0 N.B. Figures in parentheses are the figures for overseas orders and overseas order backlog. Amount Composition ratio Item Quarter of previous fiscal year Quarter of current fiscal year Amount of change Quarter-over- quarter (Reference) Previous fiscal year April 2025 To June 2025 April 2026 To June 2026 April 2025 to March 2026 Amount Composition ratio Amount Composition ratio Heat Exchanger Process Engineering Valve Others Total Item Quarter of previous fiscal year Quarter of current fiscal year Amount of change Quarter-over- quarter (Reference) Previous fiscal year April 2025 To June 2025 April 2026 To June 2026 O r d e r s R e c e i v e d April 2025 to March 2026 Amount Composition ratio Amount Composition ratio O r d e r B a c k l o g Heat Exchanger Process Engineering Valve Others Total Amount Composition ratio (2) Orders Received and Order Backlog by Segment Heat Exchanger Process Engineering Valve Others Total - 10 -