Nagaoka International Corporation Slashes FY2026 Earnings Forecast by 63%

Nagaoka International Corporation Slashes FY2026 Earnings Forecast by 63%

Nagaoka International Corporation (TSE:6239) has significantly downwardly revised its earnings guidance for the fiscal year ending June 2026, citing delays in major energy projects and deteriorating external conditions.

The company’s energy-related business faces significant headwinds. Revenue from China-sourced sales has declined, prompting a pivot toward non-China markets; however, U.S. policy shifts and Middle East tensions have pushed manufacturing timelines beyond expectations, with third-quarter sales now forecast substantially below prior-year levels. Factory utilization has dropped, increasing fixed manufacturing costs, while raw material and freight expenses remain elevated. Additionally, certain completed orders face customer financing issues and protracted specification negotiations that have halted production. Most critically, the SONATRACH STEP project—a joint venture involving Petrofac—has stalled due to the partner’s financing difficulties, making manufacturing resumption within the fiscal year uncertain. The water-related business is also underperforming, with a higher proportion of smaller and mid-sized projects reducing overall revenue below plan.

The magnitude of the downward revision—with operating profit (eigyo rieki) declining 62.9% and ordinary income (keijo rieki) falling 61.2%—underscores heightened business uncertainty. The company’s exposure to geopolitical risks, customer financing constraints, and commodity price volatility has materialized faster than anticipated. Investors should monitor project restart timelines and any further guidance adjustments as external conditions evolve.

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.