Financial Results for the Second Quarter (Half-Year) of the Fiscal Year Ending October 2026 (Consolidated) [IFRS]

Overview of Results

For the second quarter of the fiscal year ending October 2026, net sales increased, but operating income, pre-tax income, and interim income fell below the prior-year level due to higher costs. Improvements in utilization and higher contract unit prices contributed to Construction Solutions, but investments in human resources and growth areas pushed costs up. The full-year forecast remains unchanged. By segment, Construction Solutions saw higher sales, while IT Solutions remained solid. Cash increased and the financial position remained healthy.

Outlook and Impact on Investors

We will continue to execute the Change and Growth 2030 mid-term plan, maintaining four pillars: strengthening core business competitiveness, promoting Construction DX, expanding the craftsman introduction business, and boosting productivity, while continuing to invest. The cost increases are viewed as growth investments, and cash flow is expected to remain stable. At present, the full-year earnings forecast remains unchanged. Going forward, talent retention and optimization of utilization are expected to be key to the recovery in profitability.