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

Details of Revision to Earnings Guidance

Shimizu Corporation has revised upward its full-year consolidated and non-consolidated earnings guidance for the fiscal year ending March 2026. Consolidated net sales are projected at JPY 2,057.8 billion (2.4% increase from previous forecast), operating income at JPY 118.6 billion (7.8% increase), ordinary income at JPY 122.3 billion (10.2% increase), and net income attributable to owners of the parent at JPY 126.6 billion (15.1% increase). Non-consolidated results were also revised: net sales at 1,589.5 billion yen (2.5% increase), operating income at 84.2 billion yen (2.7% increase), ordinary income at 96.3 billion yen (4.1% increase), and net income at 132.9 billion yen (3.0% increase). The increase in net sales is primarily due to progress in domestic building and civil engineering construction projects leading to higher completed construction work volumes. Profit improvement reflects better profitability and enhanced project margins at subsidiaries.

Revision and Policy on Dividend Forecast

The dividend forecast has also been revised upward with an annual dividend of JPY 72 (previous forecast: JPY 38), including an increased year-end dividend of JPY 50. This is based on the policy to return profits targeting a consolidated payout ratio of 40%. Note that gains from negative goodwill included in net income attributable to owners of the parent, which do not involve cash inflows, are excluded from the dividend calculation. Order backlog for non-consolidated results also exceeded previous forecasts at JPY 1.8981 trillion. These revisions are scheduled to be officially approved at the Annual General Meeting of Shareholders to be held in June 2026.