Notice Regarding Revision of Earnings Guidance and Dividend Forecast (Dividend Increase)

Details of Earnings Guidance Revision

Tokyu Construction Co., Ltd. has revised upward its full-year consolidated earnings forecast for the fiscal year ending March 2026. Net sales are expected to reach 341.0 billion yen (up 1.5% from previous forecast), operating income 16.3 billion yen (up 19.0%), ordinary income 17.6 billion yen (up 18.9%), and net income attributable to owners of parent 13.4 billion yen (up 30.1%). Individual segment results were also revised upward mainly due to additional design change orders secured in domestic civil engineering and increased gains on sales of investment securities from stock disposals. The gross profit margin on completed construction contracts is expected to be 10.4% (building 8.3%, civil engineering 16.9%).

Revision and Policy of Dividend Forecast

The dividend forecast has also been revised, with an annual dividend of 40 yen (interim 19 yen, year-end 21 yen), representing a 2 yen increase from the previous forecast. This is based on capital policy emphasizing a balance of ROE above 10% and consolidated dividend payout ratio over 40%, taking into account increases in equity capital. The basic policy is stable and continuous shareholder returns, targeting a dividend on equity (DOE) of 4.0% or higher.