Fiscal Year Ending March 2026 Q3 Financial Summary〔IFRS〕(Consolidated)

Overview of Business Results

For the cumulative third quarter period of the fiscal year ending March 2026, consolidated results showed significant profit growth with net sales of JPY 768.6 billion (27.2% YoY increase), operating profit of JPY 66.3 billion (109.3% YoY increase), operating income of JPY 60.5 billion (94.0% YoY increase), profit before tax of JPY 76.4 billion (129.7% YoY increase), and net income attributable to owners of the parent of JPY 51.5 billion (149.3% YoY increase). The main factors were increased sales and profits from the consolidation of Sumitomo Mitsui Construction Co., Ltd. as a subsidiary and solid progress in each business segment. By segment, the building, civil engineering, and paving businesses showed revenue and profit growth, the machinery business experienced declines in both revenue and profit, and the infrastructure operation business recorded a reduced loss.

Financial Position and Cash Flow Status

Total assets amounted to JPY 1.898 trillion (30.8% increase from the previous consolidated fiscal year-end), total liabilities were JPY 1.289 trillion (42.0% increase), and total equity was JPY 608.5 billion (12.1% increase). The equity ratio attributable to owners of the parent declined from 35.8% to 30.3%, primarily due to increased liabilities following the consolidation of Sumitomo Mitsui Construction Co., Ltd. Cash flow from operating activities was JPY 27.7 billion (JPY 1.4 billion in the previous year), investing activities used JPY 9.3 billion (JPY 37.3 billion used in the previous year), and financing activities provided JPY 50.6 billion (JPY 35.6 billion in the previous year). As a result, cash and cash equivalents increased to JPY 189.4 billion.

Revision of Earnings Forecast and Dividends

The full-year earnings forecast for the fiscal year ending March 2026 was revised to net sales of JPY 1.13 trillion (33.3% YoY increase), operating profit of JPY 77.3 billion (59.3% increase), operating income of JPY 69.6 billion (47.6% increase), and net income attributable to owners of the parent of JPY 60.0 billion (85.1% increase). The dividend forecast was also revised, with an interim dividend of JPY 30.00, a year-end dividend of JPY 92.00, and an annual total of JPY 154.00. These revisions reflect the effects of consolidating Sumitomo Mitsui Construction Co., Ltd. and strong progress in each business segment.