FY2027 Second Quarter (Interim) Financial Summary [Japanese GAAP]

Overview of Results

In the interim period, net sales were 218,544 million yen, representing a 5.2% increase year-over-year. Progress on large-scale projects and improvements in construction profit margins contributed to operating income of 28,652 million yen (up 25.6%), ordinary income of 31,312 million yen (up 29.5%), and interim net income attributable to owners of parent of 21,344 million yen (up 42.9%). The business mix remains centered on construction-related segments. The company has begun transitioning its business model, including considering new schemes for the solar power business (transition from FIT to FIP, installation of energy storage, utilization of PPA, etc.). Full-year forecasts are net sales of 500,000 million yen, operating income of 61,000 million yen, and net income of 42,500 million yen (all expected to be revised upward).

Financial Position and Outlook

Total assets stand at 520,481 million yen, net assets at 366,579 million yen, and the equity ratio at 69.7%, indicating a sound financial foundation. Although investments in securities increased during the interim period, total assets were maintained through collection of notes receivable and completed-construction receivables. Considering delays in SPC-related projects, the company is examining new business schemes—such as transitioning from the FIT system to the FIP system and adding energy storage—to stabilize long-term operations. The targeted start of commercial operation for the solar power plants is within fiscal 2029, and further announcements will be made as circumstances evolve.