Q3 Supplementary Financial Results for the Fiscal Year Ending October 2026

Overview of results

For this fiscal year’s third quarter, consolidated revenue stood at 8,548 million yen, down 14.2% year over year. Gross profit was 1,539 million yen, down 14.7%, and operating income turned negative to 180 million yen due to an increase in selling, general and administrative expenses. Ordinary income was 170 million yen, and net income attributable to owners of the parent was 91 million yen, significantly below the previous year. Segmentally, profitability declined in the Wood-Home-Eco segment, but the backlog remained at a record high. In the fourth quarter, revenue recognition from several large projects is expected.

Outlook and key factors

Backlog stands at 4,623 million yen, a record high, and the full-year performance is expected to recover with including revenue recognition from large projects in 4Q. However, factors such as log log price increases, higher selling, general and administrative expenses, and slow recovery in the Heavy Steel Frame area are anticipated to continue weighing on performance. The full-year earnings guidance and dividend forecast for next year remain unchanged, with cash and cost management and balanced investment in human resources identified as challenges.