Notice Regarding Differences Between Forecasts and Actual Results for the Second Quarter (Interim) of the Fiscal Year Ending March 2027

Overview of Performance

GEOSTR Corporation announced that differences have arisen between the consolidated and non-consolidated forecasts and actual results for the second quarter of the fiscal year ending March 2027. Consolidated revenue was 8,580 million yen (compared with the prior forecast of 10,600 million yen, a -19.0% variance), operating income was 144 million yen, ordinary income was 193 million yen, and interim net income attributable to owners of parent was 951 million yen. Interim net income increased compared with the same period in the previous fiscal year. Non-consolidated indicators also showed improvement, with revenue of 8,531 million yen, operating income of 185 million yen, ordinary income of 240 million yen, and interim net income of 1,090 million yen. The full-year forecast remains unchanged for the time being; however, given a mid-term cyclical lull in segment markets and construction delays, the company will continue efforts to improve profitability.

Outlook and Impact on Shareholders

The segment product markets are entering a cyclical lull consistent with the mid-term plan, and no changes to the full-year forecast are being made at this time. While the company will promote expanded sales of civil engineering products, improving the earnings structure remains a challenge due to project delays and changes to other construction methods. If revisions become necessary, the company will disclose them promptly. In the short term, the company aims to achieve its fiscal 2027 targets through recovery in revenue and optimization of expense allocation.