Notice Concerning Revision of Earnings Guidance and Dividend Forecast (Dividend Increase) and Recording of Extraordinary Gains and Losses

Details of Revision to Earnings Guidance

For the fiscal year ending March 2026, consolidated earnings forecasts have been upwardly revised to net sales of 2.01 trillion yen (5.2% increase from previous forecast), operating income of 110 billion yen (41.0% increase), ordinary income of 111 billion yen (52.1% increase), and net income attributable to owners of parent of 110 billion yen (46.7% increase). Non-consolidated results are also expected to increase significantly, with net sales of 1.55 trillion yen (5.4% increase), operating income of 82 billion yen (54.7% increase), ordinary income of 92.5 billion yen (59.5% increase), and net income of 129 billion yen (76.7% increase). The increase in net sales is primarily due to steady progress in domestic building and civil engineering works, with profit margins improving due to enhanced profitability and acquisition of additional work orders.

Dividend Forecast and Recording of Extraordinary Gains and Losses

The dividend forecast has been increased by 21 yen from 44 yen to 65 yen per share based on a policy of returning profits targeting a consolidated payout ratio of 40%. Extraordinary gains of 91 billion yen from the sale of investment securities have been recorded, reflecting steady progress in reducing policy shareholdings. On the other hand, an impairment loss of 22 billion yen was recorded due to declining profitability of rental office buildings owned by a consolidated subsidiary in North America. Even including these extraordinary gains and losses, substantial profit growth is anticipated.