Interim report
Page 1
Accounting S Standards Fa Reference Translation SMC Company name : Listing : Securities code : URL : Representative : Inquiries : Consolidated Financial Results for the Three Months Ended June 30 , 2026 [ Under Japanese GAAP ] SMC Corporation Tokyo Stock Exchange , Prime Market 6273 https://www.smcworld.com/ir/en-jp/ Yoshiki Takada , President FASF MEMBERSHIP August 7 , 2026 Kyoichi Miyazaki , Director and Executive Officer ( disclosure.jp@smc.com ) Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : Yes Yes ( for institutional investors and analysts ) ( 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 ) ( Percentages indicate year - on - year changes . ) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Three months ended June 30 , 2026 June 30 , 2025 Millions of yen 270,987 200,180 % 35.4 ( 1.3 ) Millions of yen 73,986 44,456 % 66.4 ( 15.1 ) Millions of yen % Millions of yen % 91,790 86.9 67,863 95.9 49,115 ( 28.1 ) 34,641 ( 28.9 ) Note : Comprehensive income 258.3 % Three months ended June 30 , 2026 June 30 , 2025 For the three months ended June 30 , 2026 : \ 88,841 million For the three months ended June 30 , 2025 ¥ 24,796 million ( 77.2 % ) Basic earnings per share Diluted earnings per share Yen Yen 1,076.01 543.79 ( 2 ) Consolidated financial position Total assets Net assets Equity - to - asset ratio As of June 30 , 2026 March 31 , 2026 Reference : Equity Millions of yen 2,368,575 2,311,835 Millions of yen 2,154,827 2,115,240 % 91.0 91.5 As of June 30 , 2026 : ¥ 2,154,577 million As of March 31 , 2026 : ¥ 2,115,090 million 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 500.00 500.00 1,000.00 Fiscal year ended March 31 , 2026 Fiscal year ending March 31 , 2027 Fiscal year ending March 31 , 2027 500.00 500.00 1,000.00 ( Forecast ) Note : Revisions to the forecast of cash dividends most recently announced : None — 1 — SMC Corporation
Page 2
― 2 ― SMC Corporation 3. Forecasts of consolidated operating results for the year ending March 31, 2027 (Percentages indicate ratio against previous fiscal year end.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Year ending March 31, 2027 Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen 1,000,000 18.7 219,000 14.9 239,000 1.4 170,000 1.6 2,692.46 Note: Revisions to the forecast of operating results most recently announce d : None ＊ 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 (3) Changes in accounting policies, changes in accounting estimates, and restatement 1. Changes in accounting policies due to revisions to accounting standards and other regulations : None 2. Changes in accounting policies due to other reasons : None 3. Changes in accounting estimates : None 4. Restatement : None (4) Number of issued shares (common shares) 1. Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 63,869,359 shares As of March 31, 2026 63,869,359 shares 2. Number of treasury shares at the end of the period As of June 30, 2026 1,000,581 shares As of March 31, 2026 730,300 shares 3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 63,068,904 shares Three months ended June 30, 2025 63,703,798 shares Note: The Company’s shares held by the Board Benefit Trust (BBT) for the Directors’ Stock Compensation Plan (11,200 shares) is included in the number of treasury shares, which is excluded in the calculation for the above : 2. Number of treasury shares at the end of the period and 3. Average number of shares outstanding during the period. ＊Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm : None ＊Proper use of earnings forecasts, and other special matters 1. Forecasts are based on information and certain premises that the Company considers to be reasonable at the time these consolidated financial results for the three months are released. Some factors could cause actual results to differ from expectations. 2. The Company is scheduled to hold a financial results briefing for institutional investors and analysts on August 7, 2026. Presentation material will be released on the Company’s website on the day.
Page 3
― 3 ― SMC Corporation 1. Qualitative information about the quarterly results (1) Operating results During the three months of this fiscal year (April 1, 2026 to June 30, 2026), appetite for capital investment recovered in each country, mainly in the semiconductor-related industry. However, business conditions including the Middle East situation, monetary policy in each country, and foreign exchange trends remained uncertain. As for the demand for automatic control equipment, in the semiconductor and electrical machinery-related industries, capital investment increased in a wide range of industries in Greater China, including semiconductor, flat panel display, and secondary battery. In the regions including Japan, North America, and Asia, demand for AI and advanced semiconductors remained at a high level. In the automotive-related industry, even though EV battery-related demand was solid in Greater China, it remained sluggish in other regions, including Europe showing stagnation. Demand for machine tool-related industry was strong mainly in Japan and Greater China, supported by data center-related capital investment. Sales to medical equipment-related, food machinery-related, and other industries were solid overall, supported by demand for automation driven by labor shortages. Under these circumstances, the SMC Group has continued to address issues such as securing product supply capability to meet growing demand, strengthening both direct sales and distributor sales channels, promoting diversification of products and customers, improving productivity in product development, and utilizing its global human resources. Within the business environment described above, the summary of consolidated business results for the three months ended June 30, 2026 is as follows: Net sales were 270,987 million yen (increased by 35.4%, yoy). Operating profit was 73,986 million yen (increased by 66.4%, yoy). Although the Group recorded higher personnel expenses, depreciation, and other costs, operating profit increased significantly due to the increase in sales. Ordinary profit was 91,790 million yen (increased by 86.9%, yoy), mainly due to the increases in foreign exchange gains and gain on sale of securities. Profit before income taxes was 93,815 million yen (increased by 89.5%, yoy), and profit attributable to owners of parent was 67,863 million yen (increased by 95.9%, yoy). (2) Financial position Financial position as of the end of the three months of this fiscal year (June 30, 2026) is as follows: Total assets were 2,368,575 million yen (a 56,739 million yen or 2.5% increase from the previous fiscal year end), mainly due to a 47,219 million yen increase in cash and deposits and a 36,103 million yen increase in trade receivables. Total liabilities were 213,747 million yen (a 17,151 million yen or 8.7% increase from the previous fiscal year end), mainly due to a 10,299 million yen increase in trade payables. Total net assets were 2,154,827 million yen (a 39,587 million yen or 1.9% increase from the previous fiscal year end), mainly due to a 36,288 million yen increase in retained earnings caused by recorded profit attributable to owners of parent and a 22,594 million yen increase in foreign currency translation adjustment. (3) Consolidated forecasts and other forward-looking information There is no change to the consolidated forecast for the fiscal year 2026, announced in the "Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 [Under Japanese GAAP]" issued on May 14, 2026.
Page 4
― 4 ― SMC Corporation 2. Quarterly consolidated financial statements (1) Quarterly consolidated balance sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 663,870 711,089 Notes and accounts receivable-trade 235,325 271,428 Securities 47,832 48,140 Merchandise and finished goods 198,419 195,225 Work in process 33,289 33,474 Raw materials and supplies 274,989 284,508 Other 51,524 42,418 Allowance for doubtful accounts (959) (1,003) Total current assets 1,504,291 1,585,282 Non-current assets Property, plant and equipment Buildings and structures, net 328,073 325,785 Machinery, equipment and vehicles, net 91,195 93,772 Land 110,110 107,857 Other, net 88,629 96,898 Total property, plant and equipment 618,009 624,314 Intangible assets Leasehold interests in land 11,432 12,902 Goodwill − 7,147 Other 4,710 5,003 Total intangible assets 16,142 25,053 Investments and other assets Investment securities 121,714 78,977 Other 53,522 56,785 Allowance for doubtful accounts (1,844) (1,837) Total investments and other assets 173,392 133,924 Total non-current assets 807,544 783,292 Total assets 2,311,835 2,368,575
Page 5
― 5 ― SMC Corporation (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable-trade 31,822 42,121 Short-term borrowings 5,092 5,000 Income taxes payable 35,645 29,890 Provision for bonuses 5,799 10,212 Other 67,310 75,851 Total current liabilities 145,670 163,076 Non-current liabilities Provision for retirement benefits for directors 1,130 1,226 Provision for share awards for directors 630 657 Retirement benefit liability 8,075 7,948 Other 41,088 40,838 Total non-current liabilities 50,925 50,670 Total liabilities 196,595 213,747 Net assets Shareholders' equity Share capital 61,005 61,005 Capital surplus 73,779 73,779 Retained earnings 1,709,936 1,746,224 Treasury shares (38,513) (56,405) Total shareholders' equity 1,806,207 1,824,604 Accumulated other comprehensive income Valuation difference on available-for-sale securities 20,030 19,143 Foreign currency translation adjustment 271,634 294,228 Remeasurements of defined benefit plans 17,218 16,601 Total accumulated other comprehensive income 308,883 329,973 Non-controlling interests 149 249 Total net assets 2,115,240 2,154,827 Total liabilities and net assets 2,311,835 2,368,575
Page 6
― 6 ― SMC Corporation (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 From April 1, 2025 to June 30, 2025 Three months ended June 30, 2026 From April 1, 2026 to June 30, 2026 Net sales 200,180 270,987 Cost of sales 111,527 144,060 Gross profit 88,652 126,927 Selling, general and administrative expenses 44,195 52,940 Operating profit 44,456 73,986 Non-operating income Interest income 3,951 4,610 Foreign exchange gains − 6,013 Gain on sale of securities 1,283 6,436 Other 871 872 Total non-operating income 6,106 17,933 Non-operating expenses Interest expenses 39 64 Foreign exchange losses 1,382 − Other 25 64 Total non-operating expenses 1,447 129 Ordinary profit 49,115 91,790 Extraordinary income Gain on sale of non-current assets 153 69 Gain on sale of investment securities 279 730 Gain on step acquisitions − 1,282 Total extraordinary income 433 2,082 Extraordinary losses Loss on sale of non-current assets 7 18 Loss on retirement of non-current assets 28 38 Other 0 − Total extraordinary losses 36 57 Profit before income taxes 49,512 93,815 Income taxes 14,868 25,949 Profit 34,644 67,866 Profit attributable to non-controlling interests 2 2 Profit attributable to owners of parent 34,641 67,863
Page 7
― 7 ― SMC Corporation Quarterly consolidated statement of comprehensive income (Millions of yen) Three months ended June 30, 2025 From April 1, 2025 to June 30, 2025 Three months ended June 30, 2026 From April 1, 2026 to June 30, 2026 Profit 34,644 67,866 Other comprehensive income Valuation difference on available-for-sale securities (3,213) (887) Foreign currency translation adjustment (6,441) 22,479 Remeasurements of defined benefit plans, net of tax (193) (616) Total other comprehensive income (9,847) 20,975 Comprehensive income 24,796 88,841 Comprehensive income attributable to: Comprehensive income attributable to owners of parent 24,793 88,953 Comprehensive income attributable to non-controlling interests 2 (112)
Page 8
― 8 ― SMC Corporation (3) Notes to quarterly consolidated financial statements (Notes on changes in scope of consolidation or equity method) (Changes in scope of consolidation) From the three months ended June 30, 2026, the Group has consolidated SMC Nederland B.V ., which newly became a subsidiary of the Company due to the additional acquisition of shares. As the deemed acquisition date was set to June 30, 2026, only the balance sheet of the acquiree has been included and its operating results have not been included in the Company’s consolidated financial results for the three months ended June 30, 2026. (Notes on special accounting methods for presenting quarterly consolidated financial statements) (Calculation of tax expenses) Tax expenses were calculated by multiplying profit before income taxes by the estimated effective tax rates (effective tax rates were calculated by reasonably estimating effective tax rate of profit before income taxes of consolidated fiscal year, including the consolidated three months of this fiscal year, after the application of tax effect accounting). Tax expenses for some subsidiaries were calculated with effective statutory tax rates instead of the estimated effective tax rates. Recoverable amount for deferred tax assets was reasonably estimated. (Notes on segment information) The Company and its consolidated subsidiaries are composed of a single business segment, Automatic control equipment business. The disclosure of segment information is thereby omitted. (Notes in the event of significant changes in shareholders' equity) N/A (Notes on going-concern assumption) N/A (Notes on quarterly consolidated statement of cash flows) There is no quarterly consolidated statement of cash flows for the three months ended June 30, 2026. Depreciation for the three months ended June 30, 2026 is as follows: (Millions of yen) Three months ended June 30, 2025 From April 1, 2025 to June 30, 2025 Three months ended June 30, 2026 From April 1, 2026 to June 30, 2026 Depreciation 9,495 13,164
Page 9
― 9 ― SMC Corporation 3. Supplementary information (1) Sales by region - Customer location (Millions of yen) Japan U.S. China Asia (excl. China) Europe Other Total 46,322 25,627 87,909 54,043 44,285 12,799 270,987 Note: Net sales of Japan, U.S., and China (including Hong Kong) are individually disclosed since they are roughly at a level of 10% or above the consolidated net sales respectively. (2) Sales by region - Group company location (Millions of yen) Japan North America Greater China Other Asia Europe Other Total 47,759 31,284 96,710 44,397 43,821 7,014 270,987 Note: Net sales of “North America” includes U.S., Canada, and Mexico, and “Greater China” includes China, Hong Kong, and Taiwan. (3) Consolidated Capital expenditures, Depreciation and R&D expenses (Millions of yen) Three months ended June 30, 2026 (cumulative) Year ending March 31, 2027 (Forecast) (amount) (YoY) (amount) (vs FY25) Capital expenditures 18,812 (60.0%) 100,000 (33.4%) Depreciation 13,164 38.6% 62,300 38.9% R&D expenses 11,867 30.9% 47,000 17.5% (4) Foreign currency exchange rates Three months ended June 30, 2026 Year ending March 31, 2027 (Forecast) (average) (at end) (average) U S D ¥ 159.56 ¥ 162.45 ¥ 155.00 E U R ¥ 185.40 ¥ 185.44 ¥ 183.00 C N Y ¥ 23.44 ¥ 23.88 ¥ 22.70 (5) Consolidated Full-time employees and Temporary employees (Number of personnel) Three months ended June 30, 2026 Difference from previous fiscal year end Full-time employees (at end) 25,774 1,001 Temporary employees (average) 5,864 248