Notice Regarding Upward Revision of Full-Year Earnings Forecast and Revision of Year-End Dividend Forecast (Dividend Increase)

Regarding Upward Revision of Earnings Forecast

Japan Engine Corporation has revised upward its full-year earnings forecast for the fiscal year ending March 2026 to net sales of 29,500 million yen (+1.3% from the previous forecast), operating income of 5,380 million yen (+13.0%), ordinary income of 6,320 million yen (+8.0%), and net income attributable to owners of parent of 4,650 million yen (+7.1%). The main factors are steady demand for new shipbuilding of marine diesel engines, strong growth in the after-sales service business including repairs and parts, and the licensing-related business. Additionally, the strong performance of highly profitable businesses in the third quarter exceeded initial expectations, contributing to the revision.

Revision of Dividend Forecast (Dividend Increase) and Future Policy

The year-end dividend forecast has been increased by 6 yen from the previous 60 yen to 66 yen, resulting in an annual dividend of 86 yen. The company prioritizes shareholder returns, with a basic policy of sustaining stable dividends and enhancing internal reserves. Considering the stock split of three shares for every one share effective October 1, 2024, this represents a 10 yen increase compared to the previous fiscal year. Going forward, the company aims to pursue proactive shareholder returns aligned with earnings growth.