FY 2026 March Full-Year Earnings Explanation Materials

Performance Overview

For the fiscal year ending March 2026, the order backlog reached 111.5 billion yen (up 19.1% YoY), setting a new record high. Sales increased to 94 billion yen (up 4.8%), with gross profit rising to 21 billion yen (up 22.0%) and the gross profit margin improving by 3.2 percentage points to 22.4%. Operating income grew to 10.6 billion yen (up 43.1%), ordinary income to 11.4 billion yen (up 40.9%), and net income attributable to owners of the parent to 8.6 billion yen (up 47.0%), with ROE increasing to 11.6%.

Order and Sales Breakdown and Trends

Order backlog was driven by strong demand from government agencies and private sector large projects, with balanced growth across Heating, Sanitary, and Electrical fields. By building type, data center/information sector demand expanded significantly, and office projects also saw substantial increases. Although the ratio of renewals decreased to 58.3% from previous year, it contributed to the overall increase in order backlog. Sales also progressed steadily across customer segments and sectors, supported by robust private and government construction projects.

Dividends and Shareholder Returns

The planned year-end dividend for FY 2026 is increased to 50 yen per share based on profit above expectations. Consequently, the annual dividend is expected to total approximately 150 yen per share (considering stock splits). The payout ratio is scheduled at 37.4%, reinforcing shareholder returns. Share buybacks were conducted in FY 2025, totaling 541,400 shares and 2.09 billion yen, continuing the company's flexible capital policy.