FY2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Operating Results

For the consolidated cumulative period of Q3 FY2026, net sales declined 6.5% YoY to JPY 1,427.775 billion due to decreases in the building and development businesses. Operating income increased 53.0% YoY to JPY 122.356 billion driven by improved profit margins in civil engineering and building businesses. Ordinary income rose 41.0% YoY to JPY 130.499 billion on the back of increased operating income. Despite deterioration in special gains and losses, net income attributable to owners of the parent increased 22.4% YoY to JPY 102.568 billion. By segment, civil engineering recorded net sales of JPY 489.2 billion (7.5% increase YoY) and operating income of JPY 64.2 billion (20.3% increase YoY), while building business net sales were JPY 870.7 billion (13.1% decrease YoY) but operating income surged 314.1% YoY to JPY 45.6 billion, reflecting significant margin improvement.

Financial Condition and Future Outlook

Total assets increased 7.6% from the end of the previous consolidated fiscal year to JPY 2,612.7 billion due to the consolidation of Toyo Construction Co., Ltd. as a subsidiary, among other factors. Total liabilities rose 11.9% to JPY 1,710.4 billion, mainly due to increases in interest-bearing debt. The equity ratio stood at 33.0%, down 2.7% YoY, while net assets slightly increased to JPY 902.3 billion. There is no change to the full-year consolidated earnings forecast, which anticipates net sales of JPY 2,090.0 billion (3.0% decrease YoY), operating income of JPY 148.0 billion (23.2% increase YoY), and net income attributable to owners of the parent of JPY 137.0 billion (10.6% increase YoY). Dividend is forecasted at JPY 250 per share, representing an increase from the previous fiscal year.