Fiscal Year Ending March 2026 Third Quarter Financial Summary [Japanese GAAP] (Consolidated)

Performance Overview

During the cumulative consolidated third quarter period of the fiscal year ending March 2026, net sales increased to 62,536 million yen (6.1% increase YoY). Meanwhile, operating income was 14,621 million yen (6.7% decrease YoY), ordinary income was 14,858 million yen (5.5% decrease YoY), and net income attributable to owners of the parent was 9,905 million yen (6.2% decrease YoY), resulting in a decline in profits. The main reasons for the decline in profit were increases in depreciation expenses, personnel expenses, and subcontracting costs. EBITDA was 21,117 million yen (4.3% increase YoY), offsetting the decrease in operating income.

Segment Performance and Impact of Business Combinations

In the environmental business segment, revenue increased due to rising unit prices in the waste treatment and resource recycling fields. The soil remediation field also saw increased sales owing to a rise in contaminated soil intake volume. In facility construction and operation management, increased demolition work orders received by the consolidated subsidiary Kaisei Co., Ltd. contributed positively. On the profit side, there was a decline due to the completion of asset retirement obligation reassessments, higher depreciation unit costs, and increased personnel expenses. On November 26, 2025, Scarab Sacre Co., Ltd. was made a consolidated subsidiary, anticipating expansion of final disposal sites and synergy effects in the Kyushu area. As a result, both assets and liabilities significantly increased and goodwill of 30,040 million yen was recorded.