Financial Summary for Q1 of Fiscal Year Ending October 2026 [Japanese GAAP] (Consolidated)

Overview of Business Performance

For the first quarter of the fiscal year ending October 2026, consolidated net sales were 55,174 million yen (2.8% increase YoY), operating income was 5,689 million yen (13.9% increase YoY), ordinary income was 5,964 million yen (14.4% increase YoY), and net income attributable to owners of the parent was 3,706 million yen (14.4% increase YoY). The construction-related business continued to see major projects such as disaster prevention and mitigation measures, infrastructure renewal, and urban redevelopment, with steady demand for construction machinery rentals. Although sales of used construction machinery decreased by 21.0% YoY, we optimized the revenue structure by adjusting rental rates and improving utilization rates. Other businesses generally performed well, contributing to the increase in operating income.

Financial Position and Outlook

Total assets increased by 9,399 million yen from the previous fiscal year-end to 333,488 million yen, and total liabilities rose by 5,977 million yen to 172,060 million yen. Net assets totaled 160,885 million yen, reflecting quarterly net income of 3,706 million yen while decreasing due to dividend payments and treasury stock acquisitions. The equity ratio remained nearly flat at 45.1%. There is no change to the full-year earnings guidance for the fiscal year ending October 2026, which forecasts net sales of 221,000 million yen (3.6% increase YoY), operating income of 18,700 million yen (7.7% increase YoY), and net income attributable to owners of parent of 11,400 million yen (3.9% increase YoY).