Sato Industry Revises Forecast — Revenue Rises but Operating Profit Plunges 90.8%
Sato Industry Co., Ltd. (TOKYO PRO Market: 3450) has revised its full-year earnings forecast for the period ending February 20, 2026, with revenue revised upward but profitability deteriorating sharply across all metrics.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | ¥3,225mn (¥3.2bn) | ¥3,456mn (¥3.5bn) | +¥231mn (+7.2%) |
| Operating Profit | ¥16mn | ¥1mn | △¥15mn (△90.8%) |
| Ordinary Income | ¥26mn | ¥14mn | △¥11mn (△45.6%) |
| Net Profit | ¥26mn | ¥8mn | △¥17mn (△67.9%) |
| EPS | ¥69.30 | ¥22.27 | △¥47.03 |
The revenue increase reflects the addition of new construction orders and the early recognition of projects originally scheduled for FY2027. However, operating profit collapsed from ¥16mn to just ¥1mn — a 90.8% decline — as the company faces a severe cost environment.
The company cited surging costs for raw materials, labor, utilities, and logistics, with limited ability to pass on price increases to customers. Structural demand weakness in the steel fabrication sector is also a factor: domestic consumption of structural steel has fallen below 3.5 million tons, near levels last seen during Japan's 1960s high-growth era.
Operating profit margin has effectively fallen to near zero, raising questions about the sustainability of operations if cost pressures persist into the next fiscal year.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.