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

Overview of Financial Results

For the third quarter of the fiscal year ending March 2026, consolidated results were net sales of 239,560 million yen (21.7% year-over-year increase), operating income of 10,328 million yen (225.0% increase), ordinary income of 11,262 million yen (214.4% increase), and quarterly net income attributable to owners of the parent of 7,969 million yen (183.2% increase). The construction industry experienced steady government construction investment and increased private-sector construction investment, supporting solid performance in our domestic timber, building, and building renovation businesses, as well as international, real estate, and new business segments. By segment, the construction (building) business saw significant increases in both net sales and profits due to order growth, the construction (civil engineering) business also recorded a large profit increase driven by more domestic private-sector projects, while the real estate business achieved higher net sales but experienced profit declines.

Financial Position and Dividend Status

At the end of the third quarter of the fiscal year ending March 2026, consolidated total assets were 300,966 million yen and net assets were 106,127 million yen, resulting in an equity ratio of 34.9%, which is a 2.2 point decrease from the previous fiscal year-end. The dividend of 19 yen was paid at the end of the second quarter, with a full-year forecast of 39 yen (1 yen increase year-over-year).

Revision of Full-year Earnings Guidance for FY March 2026

The full-year consolidated earnings guidance for the fiscal year ending March 2026 has been revised to net sales of 336,000 million yen (0.3% increase from the prior forecast), operating income of 13,700 million yen (18.1% increase), ordinary income of 14,800 million yen (19.4% increase), and net income attributable to owners of the parent of 10,300 million yen (13.2% increase). The non-consolidated earnings guidance was also revised upward to net sales of 310,000 million yen, operating income of 11,200 million yen, and net income of 8,300 million yen. The primary reason for the revision is the expected increase in gross profit from construction-completed projects due to additional and design change orders in domestic civil and building construction.