Fiscal Year 2026 Financial Results Explanation Materials

Performance Overview

FY2025 sales reached 44.2 billion yen, marking an increase of 5.0 billion yen YoY. The primary driver was higher revenue from electrical equipment construction, despite a decline in product sales, resulting in an overall increasing trend. Operating profit was 3.89 billion yen, up 810 million yen YoY, and net income was 2.83 billion yen, up 100 million yen YoY. Work-in-progress inventory stood at 50.1 billion yen, increased by 4.8 billion yen due to large project orders, maintaining a solid order environment. ROE slightly declined to 12.1%, while total assets increased by 5.8 billion yen to 39.2 billion yen, strengthening the financial base.

Earnings Guidance and Future Outlook for FY2026

For FY2026, consolidated forecasts project sales of 45.0 billion yen, operating profit of 3.6 billion yen, ordinary profit of 3.65 billion yen, and net income of 2.4 billion yen. Based on the medium-term management plan, the company will continue DX investments and human resources investments, while ensuring the completion of ongoing projects and appropriately reflecting cost increases to secure operating profit of 3.6 billion yen. The market environment remains positive due to continued public investments, private sector capital expenditure, and realization of large redevelopment projects, but risks such as rising prices and geopolitical uncertainties are acknowledged. The group aims to maintain work-in-progress inventory exceeding 50 billion yen through large project orders while continuing growth investments and shareholder returns.