Notice of Revision to Full-year Consolidated and Non-consolidated Earnings Forecasts for the Fiscal Year Ended August 2026 and Expected Recognition of Special Income (Subsidy Income) and Valuation Loss on Affiliate Shares (Non-consolidated)

Overview of Earnings Revision

We have revised downward the full-year consolidated earnings forecasts for the fiscal year ended August 2026. Net sales are revised from an expected 10,800 million yen to 10,324 million yen, operating income from 1,120 million yen to 737 million yen, and ordinary income from 1,150 million yen to 836 million yen. Net income attributable to owners of parent is revised to 748 million yen, and net income per share to 165.56 yen. The revision is attributable to the carryover of large projects in the Environment & Energy segment, increased costs associated with the start-up of a new plant in the Power & Heavy Equipment segment, and the occurrence of certain group management strengthening expenses.

Special Income, Affiliate Impact and Future Outlook

We expect to record 447 million yen of subsidy income as special income. A 173 million yen valuation loss on affiliate shares is planned to be recorded on a non-consolidated basis, but it will not affect the consolidated financial statements. Going forward, the degree to which businesses expected to contribute in the fiscal year ending August 2027 actually contribute will be important. The earnings announcement is scheduled for October 14, 2026.