Presentation Material for the Second Quarter Financial Results for the Fiscal Year Ending August 2026

Overview of Financial Results

In the second quarter of the fiscal year ending August 2026, consolidated net sales reached 140.94 billion yen, an increase of 19.1% year-over-year, and operating income rose by 11.3% to 1.473 billion yen. Although profit margins declined due to worsening cost ratios and increased SG&A expenses, profits still grew. By segment, the Construction Machinery segment performed well with net sales of 102.67 billion yen (up 22.4% YoY) and operating income of 2.147 billion yen (up 10.9%). Conversely, the Press-in Construction segment recorded net sales of 4.42 billion yen (up 17.3%), but operating income decreased slightly by 0.7% to 502 million yen. Overseas sales accounted for 2.418 billion yen, representing 17.2% of total sales, with Asia comprising the largest share at 49%.

Earnings Forecast and Future Outlook

For the full fiscal year ending August 2026, the company forecasts net sales of 278.0 billion yen (up 5.6% YoY), operating income of 2.9 billion yen (up 13.0%), ordinary income of 3.05 billion yen (up 11.6%), and net income of 2.2 billion yen (up 47.9%). Earnings per share are projected at 86.73 yen. By segment, the Construction Machinery segment revised its domestic sales forecast upward to 142.0 billion yen (up 9.0%) and overseas sales to 4.65 billion yen (up 0.3%). Meanwhile, the Press-in Construction segment revised its domestic sales forecast downward to 8.4 billion yen (up 1.2%) due to delayed disaster restoration projects but revised overseas sales upward to 550 million yen (up 44.8%) by factoring in the impact of yen depreciation.