Earnings Presentation Materials

Summary of Results

For the second quarter of the fiscal year ending March 2027, orders increased substantially due to contributions from large projects such as AI and semiconductor-related plants. Revenue rose year-over-year driven by progress on large construction projects and strong demand for equipment and parts for ships. Despite higher selling, general and administrative expenses, operating income increased due to improvements in cost of goods sold and other factors. Triggered by the integration with Tsukishima HD, full-year forecasts were significantly revised upward: full-year orders are projected at 106,000 million yen, revenue at 83,500 million yen, and operating income at 9,500 million yen. The company will maintain a dividend payout ratio of 40% and plans an annual dividend of 135 yen including a commemorative dividend of 6 yen.

Overview and Impact of the Business Integration

The business integration with Tsukishima Holdings was disclosed on 2026/9/30. A share exchange on a 1:0.88 basis is planned assuming establishment of a joint holding company, and post-integration capital policies including share buybacks will be considered. Through synergies centered on GX and water environment businesses, the combined entity aims for revenue of 350 billion yen and operating income of over 30 billion yen for the fiscal year ending March 2036. The medium-term management plan after integration, covering fiscal years 2028–2031, will be disclosed in autumn 2027.