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

Overview of Business Results

For the cumulative consolidated third quarter period ending March 2026, net sales amounted to JPY 52,744 million (5.3% increase YoY), driven by growth in the Construction, Steel Structure, and Port segments. Operating income was JPY 4,669 million (13.0% decrease YoY), ordinary income was JPY 4,958 million (9.5% decrease YoY), and net income attributable to owners of the parent for the quarter was JPY 3,349 million (10.1% decrease YoY). Order intake was JPY 67,068 million (78.9% increase YoY), and order backlog stood at JPY 115,555 million (35.1% increase YoY), reflecting a solid trend. By segment, Construction segment net sales were JPY 43,423 million (4.0% increase YoY) with operating income of JPY 4,096 million (16.5% decrease YoY); Steel Structure segment net sales were JPY 6,498 million (6.9% increase YoY) with operating income of JPY 432 million (2.7% increase YoY); Port segment net sales were JPY 2,639 million (26.0% increase YoY) with operating income of JPY 118 million (operating loss in the same period last year).

Future Outlook and Business Combination

The full-year earnings guidance has been revised, with net sales expected at JPY 66 billion (unchanged from previous forecast), operating income projected at JPY 4.9 billion (14.0% increase from previous forecast), ordinary income also at JPY 4.9 billion (14.0% increase), and net income attributable to owners of the parent forecasted at JPY 3.25 billion (16.1% increase). On April 1, 2025, Denka Rinotec Co., Ltd. was made a subsidiary to expand the infrastructure maintenance business. Additionally, on January 1, 2026, an absorption-type merger among consolidated subsidiaries will be executed to strengthen the foundation of the caisson business. The financial base remains solid with an improved equity ratio of 67.0%.