Fiscal Year Ending March 2026 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Performance

Consolidated net sales for the fiscal year ending March 2026 were 252,262 million yen, a decrease of 1.9% year-over-year. This was mainly due to delays in the progress of large-scale construction projects and the impact of overseas subsidiaries. Operating income was 18,038 million yen, an increase of 11.4%, attributable to thorough cost management. Ordinary income amounted to 18,901 million yen (up 9.2%), while net income attributable to owners of parent was 10,325 million yen (down 13.8%). The decline in net income was impacted by one-time amortization and special loss recognition related to SIGMA ENGINEERING JSC. The equity ratio improved to 67.8%, reflecting a solid financial base. Cash flows were positive 6,638 million yen from operating activities, negative 5,907 million yen from investing activities, and negative 5,467 million yen from financing activities.

Dividends and Future Outlook

The annual dividend for the fiscal year ending March 2026 is planned at 72 yen (an interim dividend of 36 yen and a year-end dividend of 36 yen), with a consolidated payout ratio of 47.9%. For the fiscal year ending March 2027, consolidated earnings forecasts are net sales of 273 billion yen (up 8.2% YoY), operating income of 18.9 billion yen (up 4.8%), and net income attributable to owners of parent of 13.2 billion yen (up 27.8%). The dividend forecast is an annual 78 yen (interim 39 yen and year-end 39 yen), maintaining a stable dividend policy focused on shareholder returns. Based on the medium-term management plan, the company aims to deepen business in the Tohoku and Niigata regions, expand overseas operations, renewable energy-related construction, and renewal projects to pursue growth.