Financial Results Presentation for Fiscal Year Ending March 2026

Overview of Fiscal Year Ending March 2026

Order intake for the fiscal year ending March 2026 significantly exceeded the previous year, driven mainly by large-scale projects in the System Solutions business (outside budget), resulting in a record high order backlog. Net sales increased across all segments, supported by strong performance in the Environmental Engineering business, Operations business, and the North American subsidiary in the Overseas business. Operating income and other profit measures recorded record highs, with ordinary income including a foreign exchange gain of 621 million yen. Net income attributable to owners of parent increased by 33.3%.

Segment Performance and Financial Position

The Environmental Engineering business achieved higher net sales and operating income than the previous year, supported by steady progress in large-scale construction and repair work in resource and environmental projects. The System Solutions business saw an increase in net sales due to higher order intake of large projects, but operating income declined compared to the previous year due to increased R&D expenses and depreciation costs. The Operations business recorded both revenue and profit growth thanks to the strong performance of service subsidiaries. The Overseas business posted higher revenue and profit, driven by strong sales of core products from subsidiaries in North America and Europe. On the balance sheet, cash and deposits decreased while accounts payable and fixed assets increased, resulting in total assets of 220.292 billion yen.

Full-Year Earnings Forecast and Dividend Projection for Fiscal Year Ending March 2027

For the fiscal year ending March 2027, although a reactionary decline in large-scale projects in the System Solutions business is expected, order intake is forecast to remain at the 240 billion yen level. Net sales are projected at 240 billion yen, operating income at 15 billion yen, and net income attributable to owners of parent at 10 billion yen, marking the ninth consecutive year of revenue and profit growth, with all profit measures expected to reach new highs. The dividend is planned at 80 yen per share annually, an increase of 10 yen compared to the previous year, marking the fifth consecutive year of dividend increases.