Notice Regarding Revision of Full-Year Consolidated Earnings Forecast and Dividend Forecast for the Fiscal Year Ending March 2026

Regarding Revision of Earnings Forecast

Toyo Engineering Corporation has revised its full-year consolidated earnings forecast for the fiscal year ending March 2026, lowering net sales to 185 billion yen (150 billion yen decrease from previous forecast) and operating income to a loss of 20 billion yen (21.5 billion yen decrease). The main reasons are decreased sales for a gas-fired power generation project in Brazil and the recording of additional expenses. Ordinary income is expected to be a loss of 13 billion yen, net income attributable to owners of parent a loss of 15 billion yen, and net income per share a loss of 255.98 yen. Regarding the Brazil project, negotiations to revise the contract price with the client have not reached agreement, leading to arbitration proceedings. The additional recognition of construction losses and increased interest payments have contributed to worsening profitability.

Regarding Revision of Dividend Forecast

In response to the downward revision of earnings forecast, the year-end dividend forecast has been revised from 25.00 yen to 0.00 yen, resulting in no dividend distribution. The company expresses gratitude to its shareholders and commits to efforts for business recovery, financial stability, and an early resumption of dividend payments. The annual dividend, including the second quarter-end dividend, is expected to be 0.00 yen.