Notice Regarding Differences Between Consolidated Earnings Forecast and Actual Results for the Second Quarter (Interim Period) of Fiscal Year Ending August 2026

Performance Overview

In the second quarter of the fiscal year ending August 2026, net sales reached 15,180 million yen, operating income was 1,301 million yen, ordinary income was 563 million yen, and net income attributable to owners of the parent was 357 million yen. Compared to the previously announced earnings forecast, net sales were down 5.4%, operating income decreased by 29.4%, ordinary income declined 40.3%, and net income fell 38.8%. Compared to the same period last year, net sales showed a slight increase, but profit declined.

Causes of Differences and Outlook

The main factors for the decline in revenue and income were delays in delivery of approximately 400 non-FIT solar power plants in the renewable energy business development, which shifted to the third quarter and beyond, resulting in shortfall in net sales. Additionally, logistics costs related to securing materials and transportation for scheduled completion projects increased ahead of time, contributing to the decrease in operating income. With more than 400 completed units in inventory, it is judged that the shortfall in the first half can be compensated through deliveries in the second half, and the full-year earnings forecast remains unchanged.