Fiscal Year Ending March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Financial Performance

Consolidated results for the third quarter of the fiscal year ending March 2026 recorded net sales of 170,597 million yen (3.3% decrease YoY). However, operating income increased to 14,982 million yen (5.7% increase YoY), ordinary income rose to 15,806 million yen (3.4% increase YoY), and quarterly net income attributable to owners of parent increased significantly to 13,049 million yen (28.4% increase YoY). Both gross profit margin and operating profit margin improved, highlighting strong profitability. By segment, the Building Equipment Business saw profit growth due to increased orders and improved profitability. Meanwhile, the Machinery Systems and Environmental Systems businesses experienced declines in both revenue and profits due to a reaction to large projects in the same period last year. The Real Estate Business posted both revenue and profit growth driven by increased rental income.

Financial Position and Outlook

Total assets stood at 196,395 million yen (2.2% decrease YoY), net assets were 108,161 million yen (1.7% increase YoY), with an improved equity ratio of 55.0%. Cash flows showed positive operating cash flow of 6,921 million yen, negative investing cash flow of 997 million yen, and negative financing cash flow of 16,019 million yen. The full-year earnings guidance remains unchanged from the figures announced on November 14, 2025, projecting net sales of 250,000 million yen (1.2% decrease YoY), operating income of 27,500 million yen (25.6% increase YoY), and net income attributable to owners of parent of 21,900 million yen (27.3% increase YoY). The dividend forecast also remains unchanged at an annual 165.00 yen.