Fiscal Year Ending March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Performance Overview

For the cumulative third quarter period of the fiscal year ending March 2026, net sales amounted to ¥202,229 million (9.5% YoY increase), operating income was ¥15,329 million (54.4% YoY increase), ordinary income was ¥16,584 million (45.2% YoY increase), and net income attributable to owners of parent for the quarter totaled ¥11,089 million (35.5% YoY increase). Although the market environment has been affected by prolonged US trade policies, geopolitical risks, and concerns over economic slowdowns in various regions, capital expenditures driven by AI-related demand and consumption among high-income groups supported the economy. In the domestic market, investments related to semiconductors, automobile manufacturers, and data centers continued, resulting in an 11.3% YoY increase in order backlog due to growth overseas.

Segment Performance and Financial Position

In the Environmental Systems segment, order backlog increased 4.7% YoY, while the Coating Systems segment saw a 22.4% YoY increase due to securing large projects in Europe. Completed construction value rose in both segments, and segment profits showed an increasing trend. Regarding financial position, total assets reached ¥281,833 million (5.0% YoY increase) and net assets were ¥161,230 million (3.0% YoY increase), while the equity ratio slightly declined to 54.2% from 55.2% in the same period last year.

Dividends and Outlook

The annual dividend for the fiscal year ending March 2026 is forecasted at ¥94 (interim ¥40, year-end ¥54), representing a decrease from ¥144 in the previous fiscal year. The full-year earnings guidance anticipates net sales of ¥286,700 million (3.8% YoY increase), operating income of ¥21,300 million (18.5% YoY increase), and net income attributable to owners of parent of ¥14,400 million (30.6% YoY increase), projecting both revenue and profit growth.

Material Subsequent Event

At the Board of Directors meeting held on February 10, 2026, a resolution was passed to retire 3,700,000 shares of common stock (5.51% of total outstanding shares). The scheduled retirement date is February 27, 2026, after which the total number of outstanding shares will be 63,464,018 shares.