To Our Shareholders and Investors

We would like to thank all of our shareholders and investors for your continued support.
In FY2025, the Japanese economy continued to experience a gradual recovery, driven primarily by domestic demand and supported by improvements in the employment and income environment stemming from robust corporate earnings. However, downward risks to the economy—arising from persistent domestic inflation and instability in the international situation—had a widespread impact on business activities and daily life.
In the construction industry, public investment, including disaster prevention and mitigation, and the National Resilience Plan, remained firm, while private capital investment showed signs of recovery across a wide range of sectors, such as large-scale redevelopment projects, production facilities, and large-scale data centers. However, the floor area of new domestic architectural construction projects continues to decline due to factors such as a decrease in small- and medium-scale projects, sustained high prices for construction materials and energy, and rising labor costs resulting from labor shortages.

Under these circumstances, the Group's net sales increased by 5.8% year-on-year to 2,057.8 billion yen, driven by an increase in revenue from construction contracts, despite a decline in revenue from real estate and other. Operating income increased by 67.1% year-on-year to 118.6 billion yen, ordinary income increased by 70.7% to 122.3 billion yen. This was due to an increase in gross profit on construction contracts driven by improved profitability in domestic architectural construction projects. Net income attributable to shareholders of the corporation increased 91.8% from the previous period to 126.6 billion yen because of extraordinary gains on sale of investment securities.

Since the start of this fiscal year, material and labor costs have continued to rise. Furthermore, tensions in the Middle East have led to soaring crude oil prices and a shortage of naphtha (crude gasoline). If the turmoil in the Middle East persists, it could lead to further increases in construction costs, delays in the delivery of materials, and a reconsideration of private-sector capital investment. To ensure that these environmental changes do not significantly impact our business performance, we will continue to exercise careful judgment in accepting orders and strive to mitigate risks. Furthermore, in the case of changes to prices or construction schedules, we will thoroughly implement measures such as negotiating with customers in advance to secure their understanding for price pass-throughs or contract changes.

This fiscal year marks not only the final year of our Mid-Term Business Plan〈2024－2026〉 but also a crucial year that will serve as a stepping stone for the future. We will continually return to our core principles, rigorously maintaining our commitment to quality, safety, cost, process and environment, while striving to secure higher profitability and strengthen our competitiveness to establish a strong management foundation that remains unaffected by external conditions. Furthermore, by steadily executing our strategies and initiatives, we will achieve the Group’s sustainable growth and enhance our corporate value.

We sincerely ask for continued support and encouragement.