First Quarter Consolidated Financial Summary for the Fiscal Year Ending March 2027 (Japanese GAAP) [Consolidated]

Overview of results

During the first quarter cumulative consolidated period, net sales declined year over year. Major factors include a decrease in foundation improvement work, an increase in low-margin works prioritized for utilization, higher labor costs, and a rise in one-off SG&A expenses. Both operating income and net income attributable to owners of parent declined significantly. By segment, construction business saw decreased revenue and profit, civil engineering and architectural consulting and related businesses were in the red, and others saw a slight increase. Financial position saw a decrease in total assets and liabilities, with net assets declining, but the equity ratio improved to 68.2%. Full-year outlook was left as announced previously, and the dividend forecast was not changed.

Outlook and financial policy

Through five key strategies toward the final year of the new medium-term management plan, we continue to aim for a sustainable 100-year company. Although quarterly results remain uncertain, we intend to improve capital efficiency and manage costs to drive improvement. There is no change to the full-year earnings forecast for the fiscal year ending March 2027.