Notice Regarding Recording of Special Profit (Gain on Sale of Investment Securities) and Revision of Full-Year Earnings Forecast for Fiscal Year Ending March 2026

Overview of Earnings Forecast Revision

Based on the policy to reduce cross-shareholdings, the Company plans to sell part of its listed securities holdings by the end of March 2026 and expects to record a special profit of approximately 10 billion yen from gain on sale of investment securities. Accordingly, the consolidated full-year earnings forecast for the fiscal year ending March 2026 has been upwardly revised to net sales of 438 billion yen (up 0.7% from the previous forecast), operating income of 32 billion yen (up 7.7%), and net income attributable to owners of parent of 28.4 billion yen (up 39.9%). The individual business forecast is also upwardly revised to net sales of 411 billion yen, operating income of 30.6 billion yen, and net income of 28 billion yen.

Reasons for Revision and Future Actions

Individual business net sales are expected to exceed the previous forecast due to smooth progress of construction projects, while earnings are anticipated to increase owing to improved profitability of building construction, with operating income and ordinary income rising. The recording of special profit also contributes to the increase in net income. On the other hand, regarding the seawall construction at the Tokai Village power plant in Ibaraki Prefecture, additional costs of approximately 6.2 billion yen are expected for repairs and related expenses. Once the repair plan is finalized, if the impact on earnings is deemed significant, timely disclosure will be made. There is no change to the dividend forecast.