Notice Regarding Differences Between Subsidiary’s Forecast and Actual Results for the Second Quarter of the Fiscal Year Ending March 2027

Overview of Differences

Geostar Co., Ltd. announced that for the second quarter of the fiscal year ending March 2027, consolidated net sales declined due to timing shifts of segment products and other factors. On the profit side, some of the reduced sales were offset by higher-margin transactions; cost increases for contracts from prior fiscal years were partially absorbed through price revisions; and delays in recording certain expense items until the second half also contributed, resulting in results that exceeded the previous forecast. As a result, operating income, ordinary income, and interim net income attributable to owners of the parent increased. There is no change to the full-year forecast at this time.

Outlook and Impact on Shareholders

Although the full-year forecast remains unchanged, a challenging environment is expected to continue due to seasonal gaps in segment markets and project delays for civil engineering products. The company will continue measures to improve profitability and aim to achieve annual targets. Investors should pay attention to the fact that profits have increased despite short-term sales declines.