Financial Results for the Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Performance Overview

The consolidated results for the fiscal year ending March 2026 show net sales of 75,853 million yen (up 0.1% YoY), operating profit of 5,920 million yen (down 5.5% YoY), ordinary income of 6,077 million yen (down 13.8% YoY), and net income attributable to owners of the parent of 4,293 million yen (down 11.4% YoY). In the Asphalt Applications and Processing Products segment, sales and operating profit declined due to high raw material prices and product price revisions. The Road Paving segment saw increased sales and operating profit despite some delays in regional project orders. Other segments experienced decreased sales but significantly increased operating profit due to higher rental income from real estate.

Financial Position and Cash Flows

Total assets increased by 9.1% to 122,617 million yen. Net assets rose by 3.0% to 79,674 million yen. The equity ratio decreased from 68.8% to 64.9%. Cash flows from operating activities were 2,416 million yen (down 50.6%), investing activities used 5,290 million yen (down 57.6%), and financing activities used 4,015 million yen (a substantial decrease). The ending cash and cash equivalents totaled 24,752 million yen, a decrease from the previous year.

Dividends

The annual dividend for the fiscal year ending March 2026 was increased to 80 yen (from 75 yen last year). The payout ratio was 53.4%, and the dividend yield on net assets was 2.9%. A forecast of 85 yen annual dividends (with 45 yen at the year-end) for the fiscal year ending March 2027 has been announced.

Future Outlook

The consolidated financial forecast for the fiscal year ending March 2027 projects net sales of 80,000 million yen (up 5.5% YoY), operating profit of 6,000 million yen (up 1.3% YoY), ordinary income of 6,300 million yen (up 3.7% YoY), and net income attributable to owners of the parent of 4,300 million yen (up 0.1% YoY). Public demand related to disaster prevention, mitigation, and national infrastructure reinforcement is expected to remain high, but attention should be paid to fluctuations in crude oil prices and exchange rates.