FY2026 May Term Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Performance

During the cumulative third quarter period for the fiscal year ending May 2026, net sales amounted to JPY 100,278 million (13.6% YoY increase), operating income was JPY 5,275 million (173.2% YoY increase), ordinary income was JPY 5,221 million (204.8% YoY increase), and net income attributable to owners of parent was JPY 3,756 million (421.9% YoY increase), marking substantial profit growth. By segment, the Building Business performed strongly driven by progress on large-scale construction projects with net sales of JPY 69,422 million (27.4% YoY increase) and operating income of JPY 4,956 million (110.5% YoY increase) leading the growth. Conversely, the Real Estate Business saw a decline with net sales of JPY 1,007 million (79.9% YoY decrease) and operating income of JPY 65 million (97.4% YoY decrease) due to a drop in sales of large-scale development properties.

Financial Position and Dividends

Total assets increased to JPY 159,178 million (YoY increase) and net assets rose to JPY 69,382 million (YoY increase); however, the equity ratio decreased by 3.6 percentage points YoY to 43.5%. Regarding dividends, an annual dividend of JPY 23 (ordinary dividend of JPY 10 plus special dividend of JPY 3) is planned for the fiscal year ending May 2026, an increase from JPY 22 in the prior year. The full-year earnings guidance also forecasts increased profitability with net sales of JPY 136,000 million (10.3% YoY increase), operating income of JPY 6,000 million (158.8% YoY increase), and net income attributable to owners of parent of JPY 4,000 million (200.1% YoY increase). This positive revision, including the dividend forecast, is beneficial for investors.