Financial Presentation Materials for the Fiscal Year Ending December 2025

Overview of Fiscal Year Ending December 2025

Consolidated net sales for the fiscal year ending December 2025 totaled ¥167.9 billion (0.8% YoY increase), with operating income at ¥7.7 billion (1.4% YoY increase). Although the parent company could not offset the decline in sales of large-scale development real estate, revenue increased due to robust subsidiaries. Operating income at the parent company’s construction business increased, but a decrease in profits from large-scale development sales led to a slight decline on a standalone basis. Subsidiaries engaged in road paving, civil engineering, and building renovation contributed to overall growth.

Full-Year Forecast for Fiscal Year Ending December 2026

Net sales are projected to rise to ¥175.6 billion (4.5% YoY increase) for the fiscal year ending December 2026; however, operating income is expected to decrease to ¥7.6 billion (2.2% YoY decrease), and net income attributable to owners of parent to ¥5.0 billion (9.9% YoY decrease). With no scheduled completion of large projects, the parent company anticipates improved profit margins at order receipt, while subsidiaries maintain a cautious outlook due to concerns including labor shortages and rising labor costs. Orders are planned at ¥100.4 billion (18.7% YoY decrease), with civil engineering expected to increase and construction and real estate projected to decline.