T.RAD raised its full-year sales forecast on 2 November but cut every profit line. For the year to March 2027, it now expects sales of ¥168.0bn (up from ¥165.0bn, +1.8%), operating profit of ¥11.9bn (from ¥12.3bn, -3.2%), ordinary profit of ¥12.8bn (from ¥13.4bn, -4.4%) and net profit of ¥8.6bn (from ¥9.5bn, -9.4%). The revision replaces the forecast published on 3 August.
What the company blames
The sales upgrade comes from the latest customer sales plans, which point to higher revenue in Japan and Europe. In Japan, T.RAD says higher sales help profit but are outweighed by rising material costs and greater R&D spending. In the US segment, it cites an expected tariff burden and weaker-than-planned cost reduction.
A special item adds to the net-profit cut. T.RAD now expects to write off its old production management system this fiscal year, because the replacement project, under way since fiscal 2024, is progressing well. The company's presentation labels this a one-off factor and shows roughly ¥300mn each for Japan material costs, the US tariff and cost-reduction shortfall, and the system swap.
The tariff pass-through
The presentation gives a tariff recovery rate through price pass-through of about 80% for the year to March 2026, with about 85% expected this fiscal year. It does not state the absolute tariff cost in the same figures, and the guidance notice does not quantify the US burden.
First half
First-half sales rose 6.1% to ¥82.3bn and operating profit rose 3.4% to ¥5.58bn. Japan segment operating profit fell to ¥1.04bn from ¥2.17bn, which the company attributes to material costs. US segment operating profit rose ¥300mn to ¥655mn.
The full-year dividend forecast is unchanged at ¥82 a share after the 10-for-1 split, and an interim dividend of ¥41 is due on 27 November. T.RAD flags geopolitical risk and currency moves as remaining uncertainties.