Notice Regarding Revision of Earnings Guidance and Dividend Forecast

Details of Earnings Guidance Revision

Penta-Ocean Construction Co., Ltd. has upwardly revised its earnings guidance for the fiscal year ending March 2026. Consolidated net sales are projected at JPY 759 billion (up 4.4% from previous forecast), operating income at JPY 50.5 billion (up 27.8%), ordinary income at JPY 47.5 billion (up 31.9%), and net income attributable to owners of parent at JPY 32.0 billion (up 28.0%). Non-consolidated results have also been revised to net sales of JPY 715.5 billion (up 5.1%), operating income of JPY 47.5 billion (up 30.1%), and net income of JPY 29.0 billion (up 26.1%). Large domestic civil engineering and construction projects are progressing smoothly, and improved project profitability is the main driver of profit growth. Overseas operations are expected to decline due to some profitability adjustments.

Revision of Dividend Forecast and Shareholder Return Policy

The dividend forecast has also been revised, with the annual dividend increased from the prior forecast of 34 yen to 44 yen. The year-end dividend has been raised from 17 yen to 27 yen, resulting in a consolidated dividend payout ratio of 37.8%. The shareholder return policy aims to maintain a consolidated payout ratio above 35% and implement share buybacks with an upper limit of JPY 30 billion, purchasing JPY 10 billion annually over three years. This reflects a commitment to balancing capital enhancement and growth investment while maintaining stable dividends.