Financial Summary for Q3 FY2026 (Japanese GAAP) (Consolidated)

Overview of Business Performance

For Q3 FY2026, consolidated net sales were JPY 311,043 million (up 5.1% YoY), operating income was JPY 20,634 million (up 7.6% YoY), and ordinary income was JPY 19,922 million (up 4.7% YoY). Quarterly net income attributable to owners of parent amounted to JPY 14,424 million, a decrease of 4.4% YoY. By segment, although orders received in the civil engineering business declined, construction completion value increased, resulting in a slight increase in operating income. The building construction business saw increases in both orders received and construction completion value, with operating income rising 11.1%. The group business and other businesses also recorded substantial increases in net sales and operating income.

Revision of Full-year Earnings Forecast and Future Outlook

The consolidated full-year earnings forecast for FY2026 has been revised: net sales are projected at JPY 435,000 million (down 1.4% from the previous forecast), operating income at JPY 29,700 million (up 9.6%), ordinary income at JPY 29,000 million (up 9.4%), and net income attributable to owners of parent at JPY 20,300 million (up 12.8%). The non-consolidated forecast was also revised to net sales of JPY 408,000 million (up 2.8%) and operating income of JPY 28,600 million (up 10.0%). The primary driver of profit growth is improved profitability in building construction operations. Additionally, for the tsunami embankment construction at Tokai Village, Ibaraki Prefecture, approximately JPY 6.2 billion in additional costs is anticipated. Should this impact results due to progress in repair plans, timely disclosure will be made.