Q1 FY2027 Financial Summary for the Period Ended March 2027 (Consolidated) [Japanese GAAP]

Overview of operating results

In the first quarter-to-date consolidated period, net sales were JPY 3.4755 billion, down 36.8% from the same period previous year. Due to a substantial decline in segment products, operating income and ordinary income were negative. However, a capital gains from the sale of marketable securities as a special gain led to net income attributable to owners of the parent of JPY 820 million, a substantial increase. The market environment remains challenging, with delays in orders and rises in raw materials, logistics, and labor costs. The dividend for the 2027 fiscal year is expected to be JPY 10 per share (interim JPY 5 and year-end JPY 5). The payout ratio is explained to be about 16.6%.

Outlook and capital policy

For the full-year earnings forecast, we maintain the guidance disclosed in the May 2026 Financial Summary. We anticipate a recovery in demand for major segment products from fiscal 2028 onward and an expansion through exploring new civil engineering-related areas. The financial position shows total assets decreasing, while the equity ratio improves. The dividend policy targets a consolidated payout ratio of around 30%, aiming for a stable, long-term dividend.