Consolidated Financial Report for the 1st Quarter of FY 2026 [PDF:587KB]

About this update from Sumitomo Heavy Industries, Ltd.

Sumitomo Heavy Industries, Ltd. CONSOLIDATED FINANCIAL REPORT For the Three-Month Period from January 1 to March 31, 2026 All financial information has been prepared in accordance with generally accepted accounting principles in Japan. This document has been translated from the Japanese original as a guide to non-Japanese investors, and contains forward-looking statements that are based on management's estimates, assumptions, and projections at the time of publication. A number of factors could cause actual results to differ materially from expectations. Amounts shown in this financial statement have been rounded to the nearest million yen. Summary of Consolidated Financial Results For the Three-Month Period from January 1 to March 31, 2026 Presented April 28, 2026 Sumitomo Heavy Industries, Ltd. Listed exchanges Tokyo Stock Exchange Stock code 6302 Head office Tokyo President Toshiro Watanabe URL https://www.shi.co.jp Inquiries Atsushi Nakanishi General Manager, Corporate Communications Dept. Telephone +81 3 6737 2332 Scheduled date of payment of cash dividends - Availability of supplementary explanatory materials for financial statement Yes Holding of meeting to explain financial statement Yes FY2026 First Quarter Consolidated Results (January 1, 2026 to March 31, 2026) Business Results (Units: millions of yen) First Quarter January 1 to March 31, 2026 First Quarter January 1 to March 31, 2025 % change % change Net sales 255,566 5.8 241,536 (5.2) Operating profit 13,377 19.6 11,182 (39.3) Ordinary profit 11,046 26.9 8,705 - Profit attributable to owners of parent 7,913 21.8 6,495 (52.2) Profit attributable to owners of parent ratio (yen) 65.96 54.04 Fully diluted profit attributable to owners of parent ratio - - Note 1: Comprehensive income: Fiscal quarter ended March 31, 2026: 14,401 million yen, (- %) Fiscal quarter ended March 31, 2025: (9,394) million yen, (- %) Note 2: The presentation method has been changed since the first quarter of the consolidated fiscal year ending December 31, 2026. Accordingly, ordinary profit for the first quarter of the consolidated fiscal year ended December 31, 2025 is presented using restated figures reflecting this change. As a result, percent changes from the same period of the previous fiscal year are not described in this document. For details, please refer to "4. Items of Special Note Concerning the Quarterly Consolidated Financial Statements (Change in Presentation Method) in II. Quarterly Consolidated Financial Statements and Key Explanatory Notes." Financial Position (Units: millions of yen) End of First Quarter As of March 31, 2026 End of Previous Full Year December 31, 2025 Total assets 1,328,120 1,320,527 Total net assets 689,480 686,223 Equity ratio (%) 51.6 51.6 Reference: Equity: Fiscal quarter ended March 31, 2026: 684,897 million yen Fiscal year ended December 31, 2025: 681,666 million yen Dividends (Unit: yen) Year Ended December 31, 2025 Year Ending December 31, 2026 Year Ending December 31, 2026 (forecast) Annual dividends per share First quarter - - - Second quarter 60.00 70.00 Third quarter - - End of term 65.00 75.00 Annual dividends 125.00 145.00 Note: Changes from the most recent dividend forecast: No FY2026 Consolidated Forecasts (January 1, 2026 to December 31, 2026) (Units: millions of yen) Full Year January 1, 2026 to December 31, 2026 % change Net sales 1,090,000 2.2 Operating profit 60,000 16.5 Ordinary profit 55,000 19.7 Profit attributable to owners of parent 34,000 9.9 Profit attributable to owners of parent ratio (yen) 282.91 Note1: Changes from the most recent dividend forecast: No Note2: At the Board of Directors meeting held on February 10, 2026, the Company resolved to acquire treasury shares. However, the "Profit attributable to owners of parent ratio (yen)" in the consolidated forecasts section does not reflect the impact of the acquisition of treasury shares. Note 3: The presentation method has been changed since the first quarter of the consolidated fiscal year. Accordingly, percentage changes in ordinary profit have been calculated using restated figures reflecting this change. Additional Notes Significant changes in the scope of consolidation during the period under review : None Newly consolidated: - Excluded from consolidation: - Special accounting measures applied in the quarterly consolidated financial report: Yes Changes to accounting policies, changes to accounting estimates, and retrospective restatements Changes to accounting policies due to revisions to accounting standards: None Changes to accounting policies not otherwise stated in (i): None Changes to accounting estimates: None Retrospective restatements: None Number of shares issued (share capital) Number of shares issued at end of fiscal period (including treasury shares): As of March 31, 2026 122,905,481 shares As of December 31, 2025 122,905,481 shares Number of treasury shares at end of fiscal period: As of March 31, 2026 3,373,346 shares As of December 31, 2025 2,724,082 shares Average number of shares during fiscal period (cumulative quarterly period): As of March 31, 2026 119,969,438 shares As of March 31, 2025 120,183,482 shares *Treasury stock that is deducted to calculate the number of term-end treasury stock and the average number of shares during the fiscal period includes shares of the Company held in the trust account related to the share delivery trust established for the stock compensation plan for directors and others. *Review of the attached quarterly consolidated financial statements by a Certified Public Accountant or an Independent Auditor: None * Explanation on the proper use of earnings forecasts, and other special remarks Earnings and outlooks concerning future financial results are believed to be reasonable based on information available at the time of publication. Actual financial results may vary from the above forecast and outlook due to a variety of factors. For information on the assumptions that form the basis of the earnings forecast and items to note concerning the use of earnings forecasts, please refer to the Explanation of the Consolidated Earnings Forecast and Other Forward-Looking Estimates in the Supplementary Materials section beginning on page 7. Supplementary Materials - Table of Contents Summary of Operating Performance 6 Summary of Operating Performance for the Quarterly Consolidated Cumulative Period Under Review 6 Summary of Financial Condition for the Quarterly Consolidated Cumulative Period Under Review 7 Explanation of the Consolidated Earnings Forecast and Other Forward-Looking Estimates 7 Quarterly Consolidated Financial Statements and Key Explanatory Notes 8 Quarterly Consolidated Balance Sheets 8 Quarterly Consolidated Income Statements and Quarterly Consolidated Statement of Comprehensive Income 10 Quarterly Consolidated Income Statements 10 Quarterly Consolidated Statement of Comprehensive Income 11 Consolidated Cash Flows Statement 12 Items of Special Note Concerning the Quarterly Consolidated Financial Statements 13 (Significant Events or Conditions that Question the Premise of a Going Concern) 13 (Application of Accounting Procedures Specific to Preparation of Quarterly Consolidated Financial Statements) 13 (Change in Presentation Method) 13 (Notes regarding Significant Fluctuations to Shareholders' Equity) 13 (Notes on Segment Information, etc.) 13 (Subsequent Events of Significant Importance) 15 Supplemental Information 16 ‌Summary of Operating Performance ‌Summary of Operating Performance for the Quarterly Consolidated Cumulative Period Under Review Regarding the economic environment surrounding the Group for the first quarter under review, amid uncertainty regarding the economic outlook caused by the deteriorating situation in the Middle East and rising oil prices.in Japan, capital investment and exports have remained firm recently. Turning to overseas regions, the US economy remained strong, and Europe experienced a gradual recovery. Meanwhile, demand in China remained sluggish. In this business environment, according to the "Medium-Term Management Plan 2026," the Group aimed to increase corporate value in a sustainable manner by solving social issues through products and services. Also, we moved forward with measures, such as expanding contribution to SDGs and strengthening initiatives for reducing negative environmental impacts, as well as improving our earning capacity and capital efficiency and strengthening our efforts to explore new businesses in order to develop a robust entity. As a result, the Group's orders came to JPY318.4 billion (up 22% year on year), while sales amounted to JPY255.6 billion (up 6% year on year). In terms of profitability, the Group posted operating profit of JPY13.4 billion (up 20% year on year), ordinary profit of JPY11.0 billion (up 27% year on year) and profit attributable to owners of parent came to JPY7.9 billion (up 22% year on year). The situation by segment is described below. Mechatronics Orders increased for gear reducers due to strong demand in Japan and abroad. Motor and inverters orders also rose on the back of increasing demand from customers in Europe. In addition, cryocoolers experienced an increase in orders, fueled by a surge in semiconductor-related demand in the United States and China. Sales and operating profit also increased due to a rise in orders. As a result, in year-on-year terms, orders increased by 16% to JPY78.2 billion, sales increased by 12% to JPY72.4 billion, and operating profit increased by 43% to JPY6.8 billion. Industrial Machinery Orders decreased as customers for semiconductor manufacturing equipment postponed and revised their investment plans, although orders for plastics machinery increased. Sales and operating profit saw a modest increase following the growth in orders for plastics machinery. As a result, in year-on-year terms, orders decreased by 12% to JPY47.9 billion, sales increased by 2% to JPY49.4 billion, and operating profit came to JPY0.6 billion. Logistics & Construction Orders increased, supported by large orders for rental hydraulic excavators in North America and stronger demand from Europe, although orders for industrial cranes declined due to a reaction to the solid level of orders secured in the previous year. Sales increased due to order backlogs of industrial cranes and a rise in orders for hydraulic excavators in Europe, while operating profit decreased due to rising costs for the hydraulic excavator business in North America. As a result, in year-on-year terms, orders increased by 15% to JPY110.2 billion, sales grew by 10% to JPY90.0 billion, and operating profit decreased by 37% to JPY2.1 billion. Energy & Lifeline Orders increased, driven by biomass power generation plant orders in Europe, as well as large orders for water treatment equipment and marine structures. Sales decreased due to lower sales recognized for biomass power generation plants and marine structures in the period under review, while operating profit remained unchanged year on year, primarily driven by improved project profitability of biomass power generation plants. As a result, in year-on-year terms, orders increased by 94% to JPY80.5 billion, sales decreased by 7% to JPY41.8 billion, and operating profit increased by 9% to JPY3.2 billion. Others Orders decreased by 3% to JPY1.6 billion, sales decreased by 3% to JPY1.9 billion, and operating profit increased by 18% to JPY0.6 billion. ‌Summary of Financial Condition for the Quarterly Consolidated Cumulative Period Under Review Condition of Assets, Liabilities, and Net Assets Total assets at the end of the first quarter of the current consolidated fiscal year (ended March 31, 2026) amounted to JPY1,328.1 billion, an increase of JPY7.6 billion as compared to the end of the previous consolidated fiscal year. This was mainly due to a decrease of JPY22.3 billion in notes and accounts receivable - trade and contract assets, while cash and deposits increased by JPY13.4 billion and inventory assets rose by JPY13.4 billion as compared to the end of the previous consolidated fiscal year. Total liabilities came to JPY638.6 billion, an increase of JPY4.3 billion as compared to the end of the previous consolidated fiscal year. This was partly because interest-bearing liabilities increased by JPY24.6 billion, while notes and accounts payable - trade decreased by JPY19.6 billion. Net assets amounted to JPY689.5 billion, an increase of JPY3.3 billion as compared to the end of the previous consolidated fiscal year. This was mainly due to an increase of JPY6.5 billion in foreign currency translation adjustments. As a result of the above, the shareholders' equity ratio remained unchanged from the end of the previous consolidated fiscal year, standing at 51.6%. Cash Flow Condition Cash and cash equivalents at the end of the first quarter of the current consolidated fiscal year under review came to JPY121.2 billion, an increase of JPY13.6 billion from the end of the previous consolidated fiscal year. Cash flows for the consolidated cumulative first quarter under review and the factors contributing to increases or decreases in cash flows are as follows. (Cash Flow from Operating Activities) Cash flow from operating activities increased by JPY4.6 billion during the consolidated cumulative first quarter under review, and declined by JPY7.9 billion year on year. This was mainly due to a greater decrease in notes and accounts payable, while quarterly profit before income taxes increased and a reduction in accounts receivable - trade and contract assets expanded. (Cash Flow from Investing Activities) In the consolidated cumulative first quarter under review, cash flow from investing activities resulted in a JPY6.2 billion cash outflow. This represented a JPY9.4 billion year-on-year decrease in outflow. This was due to decreased spending on tangible and intangible fixed assets, as well as spending on the acquisition of shares in subsidiaries, which resulted in a change in the scope of consolidation, during the previous fiscal year. (Cash Flow from Financing Activities) In the cumulative first quarter of the current consolidated fiscal year, cash flow from financing activities resulted in a JPY11.8 billion increase in cash. This represented a JPY4.9 billion year-on-year decrease in inflow. This was partly because the increase in interest-bearing debts slowed down and expenses for the acquisition of treasury shares increased. ‌Explanation of the Consolidated Earnings Forecast and Other Forward-Looking Estimates No change has been made to the consolidated earnings forecast for the fiscal year ending December 31, 2026 that was announced in the financial report dated February 10, 2026. ‌Quarterly Consolidated Financial Statements and Key Explanatory Notes ‌Quarterly Consolidated Balance Sheets (Units: millions of yen) End of Full Year As of December 31, 2025 End of First Quarter As of March 31, 2026 Amount Amount Assets Current assets Cash and deposits 111,072 124,521 Notes and accounts receivable - trade and contract assets 313,661 291,385 Inventory assets 328,776 342,203 Other 35,462 39,372 Allowance for doubtful accounts (2,188) (3,175) Total current assets 786,782 794,306 Fixed assets Tangible fixed assets Land 112,606 112,927 Other (net) 260,631 261,861 Total tangible fixed assets 373,237 374,788 Intangible fixed assets Goodwill 11,045 8,916 Other 22,037 24,055 Total intangible fixed assets 33,083 32,971 Investments and other assets Other 132,661 131,550 Allowance for doubtful accounts (5,236) (5,495) Total investments and other assets 127,425 126,054 Total fixed assets 533,745 533,814 Total assets 1,320,527 1,328,120 Liabilities Current liabilities Notes and accounts payable - trade 146,422 126,818 Short-term loans payable 88,882 103,226 Current portion of long-term loans payable 8,457 8,407 Commercial Papers 23,000 32,000 Provision for bonuses 9,135 15,977 Provision for construction warranties 12,583 12,823 Other provision amount 2,252 1,454 Other 118,785 111,366 Total current liabilities 409,516 412,070 Fixed liabilities Bonds payable 60,000 60,000 Long-term debt due after one year 72,364 73,719 Defined benefit liability 34,709 34,690 Deferred income taxes on revaluation 20,854 20,854 Provision amount 51 52 Other 36,811 37,255 Total fixed liabilities 224,788 226,570 Total liabilities 634,304 638,640 End of Full Year As of December 31, 2025 End of First Quarter As of March 31, 2026 Amount Amount Net assets Shareholders' equity Capital stock 30,872 30,872 Capital surplus 24,060 24,060 Retained earnings 444,590 444,784 Treasury shares (11,146) (14,569) Total shareholders' equity 488,376 485,147 Accumulated other comprehensive income Valuation difference on available-for-sale securities 9,011 9,393 Deferred gains or losses on hedges (591) (114) Revaluation reserve for land 39,392 39,392 Foreign currency translation adjustments 104,338 110,868 Remeasurements of defined benefit plans 41,139 40,210 Total accumulated other comprehensive income 193,290 199,749 Non-controlling interests 4,557 4,584 Total net assets 686,223 689,480 Total liabilities and net assets 1,320,527 1,328,120 ‌Quarterly Consolidated Income Statements and Quarterly Consolidated Statement of Comprehensive Income ‌Quarterly Consolidated Income Statements Three months ended March 31, 2026 (Units: millions of yen) Previous First Quarter January 1, 2025 to March 31, 2025 Present First Quarter January 1, 2026 to March 31, 2026 Amount Amount Net sale 241,536 255,566 Cost of sales 181,284 188,677 Gross income 60,253 66,890 Selling, general and administrative expenses 49,071 53,512 Operating profit 11,182 13,377 Non-operating profit Interest income 492 383 Dividend income 71 71 Other 1,338 1,575 Total non-operating profit 1,901 2,029 Non-operating expenses Interest expenses 856 1,086 Foreign exchange loss 2,144 954 Patent related expenses 333 340 Other 1,044 1,980 Total non-operating expenses 4,378 4,360 Ordinary profit 8,705 11,046 Extraordinary profit Gain on sale of investment securities 1,345 2,240 Total extraordinary profit 1,345 2,240 Extraordinary losses Impairment loss 126 87 Total extraordinary losses 126 87 Profit before income taxes 9,924 13,199 Income taxes 3,351 5,295 Profit 6,574 7,904 Profit attributable to non-controlling interests 79 (9) Profit attributable to owners of parent 6,495 7,913 ‌Quarterly Consolidated Statement of Comprehensive Income Three months ended March 31, 2026 (Units: millions of yen) Previous First Quarter January 1, 2025 to March 31, 2025 Present First Quarter January 1, 2026 to March 31, 2026 Amount Amount Profit 6,574 7,904 Other comprehensive income Valuation difference on available-for-sale securities (1,090) 383 Deferred gains or losses on hedges 575 477 Revaluation reserve for land (596) - Foreign currency translation adjustments (14,367) 6,567 Adjustment to retirement benefits (488) (911) Share of other comprehensive income of entities accounted for using equity method (1) (20) Total other comprehensive income (15,968) 6,497 Comprehensive income (9,394) 14,401 (Breakdown) Quarterly comprehensive income attributable to owners of parent (9,266) 14,373 Quarterly comprehensive income attributable to non-controlling interests (127) 28 ‌Consolidated Cash Flows Statement (Units: millions of yen) Previous First Quarter January 1, 2025 to March 31, 2025 Present First Quarter January 1, 2026 to March 31, 2026 Cash flows from operating activities Profit before income taxes 9,924 13,199 Depreciation 9,177 10,229 Impairment loss 126 87 Proceeds from sale of investment securities (1,345) (2,240) Interest and dividend income (563) (454) Interest expenses 856 1,086 Increase (decrease) in reserve amount 7,132 7,412 (Increase) decrease in notes and accounts receivable and contract assets 21,809 27,857 (Increase) decrease in inventories (11,093) (10,523) Increase (decrease) in notes and accounts payable (1,193) (20,671) Other (16,514) (16,241) Subtotal 18,316 9,742 Interest and dividends received 482 446 Interest expenses (693) (998) Payments for income taxes (5,652) (4,605) Net cash provided by or used in operating activities 12,452 4,585 Cash flows from investing activities Cash outflow due to the acquisition of tangible and intangible fixed assets (14,783) (10,378) Cash flow from the sale of tangible and intangible fixed assets 1,081 135 Cash outflow due to the acquisition of shares in subsidiaries that results in change in scope of consolidation (3,047) - Purchase of investment securities (2) (2) Proceeds from the sale of investment securities 1,724 2,520 (Increase) decrease in short-term loans 36 (2) Payments of loans receivable (2,733) (2,286) Cash flow from loan recoveries 2,253 3,821 Other (97) (2) Net cash provided by or used in investing activities (15,569) (6,194) Cash flows from financing activities Net increase (decrease) in short-term loans 5,361 13,601 Increase (decrease) in commercial papers 18,000 9,000 Proceeds from long-term debt 3,373 2,000 Repayments for long-term debt (1,647) (843) Cash dividends paid (7,630) (7,639) Payment of dividends to non-controlling stockholders (1) (2) Acquisition of treasury shares (1) (3,459) Other (823) (905) Net cash provided by or used in financing activities 16,631 11,754 Effect of exchange rate changes on cash and cash equivalents (2,335) 2,891 Net increase (decrease) in cash and cash equivalents 11,179 13,035 Cash and cash equivalents at beginning of year 107,542 107,622 Increase in cash and cash equivalents due to merger with non-consolidated subsidiaries - 586 Decrease in cash and cash equivalents due to deconsolidation (135) - Cash and cash equivalents at end of quarter 118,586 121,243 ‌Items of Special Note Concerning the Quarterly Consolidated Financial Statements ‌(Significant Events or Conditions that Question the Premise of a Going Concern) There are no applicable items. ‌(Application of Accounting Procedures Specific to Preparation of Quarterly Consolidated Financial Statements) (Calculation of tax expenses) The effective tax rate expected to be imposed on pretax profit (after tax effect accounting) applicable to the consolidated fiscal year in which the first quarter of the current consolidated fiscal year under review is included was estimated based on reasonable assumptions, and tax expenses were calculated by multiplying the quarterly pretax profit by the estimated effective tax rate. ‌(Change in Presentation Method) (Related to Consolidated Income Statements) "Gain on sale of investment securities," which was included in "Non-operating profit" in the cumulative first quarter of the previous consolidated fiscal year, is presented in "extraordinary profit" starting from the consolidated cumulative first quarter under review, taking into account the increased monetary impact of such gain to the financial statements. To reflect this change in presentation method, consolidated financial statements for the cumulative first quarter of the previous consolidated fiscal year have been restated. As a result, JPY1,345 million of "Gain on sale of investment securities," which was stated in "Non-operating profit" in the Consolidated Income Statement for the cumulative first quarter of the previous consolidated fiscal year, is restated as an entry of JPY1,345 million of "Gain on sale of investment securities" under "Extraordinary profit." Consequently, "Ordinary profit" and "Extraordinary profit" came to JPY8,705 million and JPY1,345 million, respectively. ‌(Notes regarding Significant Fluctuations to Shareholders' Equity) (Acquisition of Treasury Shares) According to a resolution adopted at the Board of Directors meeting held on February 10, 2026, the Company acquired 659,500 shares of treasury stock. As a result, the value of treasury shares rose by JPY3,423 million during the consolidated cumulative first quarter under review, reaching JPY14,569 million at the quarter's end. This increase also accounts for factors such as changes in value due to the acquisition of fractional shares. *Treasury stock as of the end of the first quarter of the current consolidated fiscal year includes shares of the Company held in the trust account related to the share delivery trust established for the stock compensation plan for directors and others. ‌(Notes on Segment Information, etc.) (Segment Information) Summary of Reporting Segments The Group's reporting segments are based on those units within the Group where separate financial information is available and where the Group's Board of Directors periodically deliberates over such matters as the distribution of management resources and the financial performance of such segments. The Group formulates a comprehensive international and domestic strategy for individual products and services for the head office and for each consolidated subsidiary, and executes such strategies at the operating level. Consequently, the Group comprises segments that are split by categories of products and services offered by the head office and consolidated subsidiaries. More specifically, the four reporting segments of the Group are "Mechatronics", "Industrial Machinery", "Logistics & Construction", and "Energy & Lifeline". Businesses Main Products Mechatronics Gear reducers, motors, inverters, cryocoolers, precision positioning equipment Industrial Machinery Plastics machinery, film forming machines, precision forgings, semiconductor manufacturing equipment, ion accelerators, medical machines and equipment, forging press machines, air-conditioning equipment, defense equipment Logistics & Construction Hydraulic excavators, mobile cranes, road machinery, material handling systems, logistics systems, automated parking systems Energy & Lifeline Power generation equipment (such as boilers), air pollution control equipment, water and sewage treatment systems, turbines, pumps, mixing vessels, food processing machinery, ships, marine structures Information on Sales, Profit, and Loss Amounts by Reporting Segment Previous First Quarter January 1, 2025 to March 31, 2025 (Units: millions of yen) Segment Item A B C D Subtotal Other 1 Total E 2 F 3 Net sales Sales to external customers 64,529 48,643 81,541 44,899 239,611 1,925 241,536 - 241,536 Internal sales between segments or exchanges 596 296 84 634 1,610 802 2,412 (2,412) - Total 65,125 48,939 81,624 45,533 241,221 2,727 243,948 (2,412) 241,536 Segment profit (loss) 4,762 (432) 3,344 2,964 10,637 546 11,184 (1) 11,182 Segments: A: Mechatronics B: Industrial Machinery C: Logistics & Construction D: Energy & Lifeline E: Adjustments F: Amounts recorded in Quarterly Consolidated Income Statements Notes: "Other" represents businesses that are not included in the reporting segments. This includes the Group's real-estate businesses, software-related business, and other businesses. The segment profit (loss) adjustment of minus JPY1 million is due to the deletion of intersegment transactions. Segment profits (losses) have been adjusted as compared to the operating profit recorded in the Quarterly Consolidated Income Statement. Present First Quarter (January 1, 2026 to March 31, 2026) (Units: millions of yen) Segment Item A B C D Subtotal Other 1 Total E 2 F 3 Net sales Sales to external customers 72,426 49,431 90,040 41,796 253,693 1,874 255,566 - 255,566 Internal sales between segments or exchanges 665 355 61 318 1,400 844 2,244 (2,244) - Total 73,091 49,786 90,102 42,114 255,093 2,717 257,810 (2,244) 255,566 Segment profit 6,830 567 2,117 3,222 12,737 632 13,368 9 13,377 Segments: A: Mechatronics B: Industrial Machinery C: Logistics & Construction D: Energy & Lifeline E: Adjustments F: Amounts recorded in Quarterly Consolidated Income Statements Notes: "Other" represents businesses that are not included in the reporting segments. This includes the Group's real- estate businesses, software-related business, and other businesses. The segment profit (loss) adjustment of minus JPY9 million is due to the deletion of intersegment transactions. Segment profits have been adjusted as compared to the operating profit recorded in the Quarterly Consolidated Income Statement. ‌(Subsequent Events of Significant Importance) There are no applicable items. ‌Supplemental Information (Orders Received, Sales, and Balance of Orders Received, by Segment) Orders Received (Units: millions of yen) Segment Previous First Quarter January 1, 2025 to March 31, 2025 Present First Quarter January 1, 2026 to March 31, 2026 Y/Y Change Amount Amount Amount % Mechatronics 67,325 78,242 10,916 16.2 Industrial Machinery 54,417 47,866 (6,551) (12.0) Logistics & Construction 95,432 110,191 14,758 15.5 Energy & Lifeline 41,396 80,511 39,115 94.5 Others 1,679 1,630 (49) (2.9) Total 260,250 318,440 58,190 22.4 Sales (Units: millions of yen) Segment Previous First Quarter January 1, 2025 to March 31, 2025 Present First Quarter January 1, 2026 to March 31, 2026 Y/Y Change Amount Amount Amount % Mechatronics 64,529 72,426 7,897 12.2 Industrial Machinery 48,643 49,431 789 1.6 Logistics & Construction 81,541 90,040 8,500 10.4 Energy & Lifeline 44,899 41,796 (3,104) (6.9) Others 1,925 1,874 (52) (2.7) Total 241,536 255,566 14,030 5.8 Balance of Orders Received (Units: millions of yen) Segment End of Full Year As of December 31, 2025 Present First Quarter As of March 31, 2026 Y/Y Change Amount Amount Amount % Mechatronics 98,941 104,757 5,816 5.9 Industrial Machinery 148,843 147,278 (1,565) (1.1) Logistics & Construction 216,960 237,110 20,150 9.3 Energy & Lifeline 267,199 305,914 38,716 14.5 Others 1,677 1,434 (243) (14.5) Total 733,621 796,494 62,873 8.6

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