Financial Summary for the 3rd Quarter of the Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Overview of Business Performance

For the 3rd quarter of the fiscal year ending March 2026, consolidated net sales amounted to 319,253 million yen, a 3.0% decrease year-over-year; however, operating income increased to 36,444 million yen (23.7% increase YoY), ordinary income was 39,083 million yen (23.1% increase YoY), and net income attributable to owners of the parent for the quarter reached 25,464 million yen (22.3% increase YoY), marking profit growth. The decrease in net sales was due to the decline in large-scale projects such as large complex buildings, while improved construction profit margins contributed to income growth. Orders received increased by 12.0% year-over-year to 369,718 million yen, driven by strong redevelopment projects in the Tokyo metropolitan area, integrated resort projects in the Kansai region, and data center-related construction.

Financial Position and Revision of Earnings Forecast

Total assets stood at 482,984 million yen (1.1% decrease from the end of the previous consolidated fiscal year), total liabilities were 150,515 million yen (14.6% decrease), and total net assets were 332,469 million yen (6.5% increase), improving the equity ratio to 68.0%. The full-year earnings forecast for the fiscal year ending March 2026 has been revised downward for net sales from the previous forecast of 490,000 million yen to 475,000 million yen (3.1%), while operating income, ordinary income, and net income were upwardly revised by 15.7%, 15.8%, and 12.5%, respectively. The sales decline was due to delays in large-scale solar power construction progress; however, improved construction profit margins supported the increase in profits. The dividend forecast was raised to an annual 200 yen.