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

Overview of Performance

In the cumulative consolidated period for the third quarter of the fiscal year ending March 2026, net sales increased to JPY 424,740 million (2.7% YoY increase); however, operating income posted a loss of JPY 4,666 million, significantly deteriorating from JPY 9,746 million in the same period last year. Net quarterly loss attributable to owners of the parent amounted to JPY 6,311 million, turning from a net profit of JPY 5,393 million the previous year. By segment, although the Environmental segment saw increased sales, operating income decreased to JPY 678 million due to a decline in high-margin projects and technical troubles at overseas subsidiaries. The Machinery & Infrastructure segment recorded decreased sales impacted by the sale of its press business, posting an operating loss of JPY 2,839 million. The Decarbonization segment also recorded decreased sales and an operating loss of JPY 2,851 million.

Financial Position and Revision of Earnings Guidance

Total assets increased to JPY 655,217 million compared to the previous consolidated fiscal year-end, while net assets decreased to JPY 186,893 million due to the recording of net quarterly loss attributable to owners of the parent. The full-year earnings guidance for the fiscal year ending March 2026 was revised to an operating income of JPY 13,500 million (down from JPY 18,000 million previously), ordinary income of JPY 13,000 million (down from JPY 14,000 million previously), and net income attributable to owners of the parent of JPY 5,000 million (down from JPY 10,000 million previously), reflecting technical troubles at overseas environmental subsidiaries and other factors. The company plans to promptly reflect any impacts related to inappropriate conduct in the future earnings outlook.