FY2025 : Financial Results (April 1, 2025 to March 31, 2026)

May 13, 2026

Company name: OBAYASHI CORPORATION Listing: Tokyo Stock Exchange

Securities code: 1802

URL: https://www.obayashi.co.jp/en/

Representative: Toshimi Sato, Representative Director, President and CEO Inquiries: Naoya Iba, General Manager of Accounting Department Telephone: +81-3-5769-1701

Scheduled date of annual general meeting of shareholders: June 29, 2026 Scheduled date to commence dividend payments: June 30, 2026 Scheduled date to file annual securities report: June 22, 2026 Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (for analysts and institutional investors)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)
   1. Consolidated operating results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 2,586,258 2,590,765	% (0.2) 11.4	Millions of yen 194,678 142,469	% 36.6 79.5	Millions of yen 204,195 152,236	% 34.1 66.4	Millions of yen 173,759 145,355	% 19.5 93.7

      Note: Comprehensive income For the fiscal year ended March 31, 2026: 222,645 Millions of yen [131.9%] For the fiscal year ended March 31, 2025: 95,997 Millions of yen [(49.4)%]

      	Basic earnings per share (EPS)	Diluted earnings per share	Rate of return on equity (ROE)	Ratio of ordinary profit to total assets	Ratio of operating profit to net sales
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2026	249.42	-	14.4	6.6	7.5
      March 31, 2025	202.91	-	12.6	5.0	5.5

      Reference: Share of profit (loss) of entities accounted for using equity method For the fiscal year ended March 31, 2026: 1,333 Millions of yen

      For the fiscal year ended March 31, 2025: 1,123 Millions of yen

      Note: Due to a change in accounting policy, results for the fiscal year ended March 31, 2025, have been re-presented retrospectively.

   2. Consolidated financial position

      	Total assets	Net assets	Equity-to-asset ratio	Net assets per share (BPS)
      As of	Millions of yen	Millions of yen	%	Yen
      March 31, 2026	3,143,449	1,316,466	40.0	1,830.64
      March 31, 2025	3,042,778	1,210,201	38.1	1,628.88

      Reference: Equity

      As of March 31, 2026: 1,258,424 Millions of yen

      As of March 31, 2025: 1,158,245 Millions of yen

      Note: Due to a change in accounting policy, results for the fiscal year ended March 31, 2025, have been re-presented retrospectively.

   3. Consolidated cash flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 252,920 84,161	Millions of yen (84,363) 10,044	Millions of yen (141,449) (50,440)	Millions of yen 416,028 380,169

   Note: Due to a change in accounting policy, results for the fiscal year ended March 31, 2025, have been re-presented retrospectively.

2. Cash dividends

   	Annual dividends per share					Total cash dividends (Total)	Payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen	Millions of yen 57,911 60,941	%	%
   Fiscal year ended March 31, 2025	-	40.00	-	41.00	81.00		39.9	5.0
   Fiscal year ended March 31, 2026	-	41.00	-	47.00	88.00		35.3	5.1
   Fiscal year ending March 31, 2027 (Forecast)	-	47.00	-	47.00	94.00		41.2

   Note: Due to a change in accounting policy, payout ratio (consolidated) and ratio of dividends to net assets (consolidated) for the fiscal year ended March 31, 2025, have been re-presented retrospectively.

3. Consolidated forecasts for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027)

(Percentages indicate year-on-year changes.)

1. Significant changes in the scope of consolidation during the period: None
2. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: Yes

   3. Changes in accounting estimates: None

   4. Restatement: None

      Refer to page 21 of the appendix, (5) Notes to the Consolidated Financial Statements "Changes in Accounting Policies" for details.

3. Number of issued shares (ordinary shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      March 31, 2026	691,811,346 shares
      March 31, 2025	721,509,646 shares

   2. Number of treasury shares at the end of the period

      March 31, 2026	4,389,832 shares
      March 31, 2025	10,439,266 shares

   3. Average number of shares outstanding during the period

1. Non-consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)
   1. Non-consolidated operating results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit
      Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 1,509,991 1,660,662	% (9.1) 5.0	Millions of yen 129,952 89,418	% 45.3 106.4	Millions of yen 174,607 98,673	% 77.0 78.1	Millions of yen 162,842 115,721	% 40.7 133.1

      	Basic earnings per share (EPS)	Diluted earnings per share
      Fiscal year ended	Yen	Yen
      March 31, 2026	233.75	-
      March 31, 2025	161.54	-

   2. Non-consolidated financial position

   	Total assets	Net assets	Equity-to-asset ratio	Net assets per share (BPS)
   As of March 31, 2026 March 31, 2025	Millions of yen 2,101,094 2,135,276	Millions of yen 873,189 822,644	% 41.6 38.5	Yen 1,270.24 1,156.91

   Reference: Equity

   As of March 31, 2026: 873,189 Millions of yen

   As of March 31, 2025: 822,644 Millions of yen

2. Non-consolidated forecast for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027)

(Percentages indicate year-on-year changes.)

• This financial results report is exempt from audit conducted by certified public accountants or an audit firm.

• Proper use of earnings forecasts, and other special matters

  1. Refer to page 2 of the appendix for consolidated forecasts.

  2. Forward-looking statements and figures in this document are based on the information that the Company is able to obtain at the present point. Actual results may be different due to various factors.

  3. The Company will hold a financial results briefing for analysts and institutional investors on Thursday, May 14, 2026. Presentation document is on the Company's website.

Contents of Appendix

1. Overview of Operating Results and Financial Position 1

2. Basic Policy Regarding Selection of Accounting Standards 5

3. Financial Highlights 6

4. Breakdown of Net Sales and Operating Profit/Gross Profit for Domestic/Overseas Segments 9

5. Breakdown of Non-consolidated Orders Received, Net Sales and Projects in Process 11

6. Major Projects 13

7. Consolidated Financial Statements 14

8. Non-consolidated Financial Statements 28

In FY2025, the Japanese economy continued its gradual recovery, given the upturn in consumer spending and improvement in corporate profits. It is expected that the improvement in employment and personal income will support the gradual recovery in the economy, however, trends in raw material and energy prices and other matters due to the situation in the Middle East require close monitoring. In addition, close attention is required to the fluctuations in financial and capital markets, ongoing developments surrounding US trade policy and others.

In the domestic construction market, although there are concerns about a decline in companies' capital investments mainly due to soaring construction material prices and exchange rate fluctuations, the environment for orders is expected to remain firm for the time being, backed by steady orders for private-sector construction and public works projects.

Under such circumstances, the Obayashi Group's consolidated net sales amounted to 2,586.2 billion yen, a decrease of 4.5 billion yen (0.2%) from the previous fiscal year, reflecting a decline in the domestic building construction business which benefited from progress with large-scale projects, despite steady progress with projects in hand in the overseas building construction and in the domestic and overseas civil engineering businesses. In terms of profit and loss, operating profit amounted to 194.6 billion yen, an increase of 52.2 billion yen (36.6%) from the previous fiscal year. Ordinary profit amounted to 204.1 billion yen, an increase of 51.9 billion yen (34.1%) year-on-year. These were mainly due to factors including additional claim approvals and change orders, greater contribution from highly profitable construction projects in the domestic building construction business, steady progress with projects in hand in the overseas civil engineering business, and the sale of developed properties in the real estate business. Profit attributable to owners of parent amounted to 173.7 billion yen, an increase of 28.4 billion yen (19.5%) year-on-year.

Operating results by business segment for FY2025 were as follows:

Construction business

Consolidated orders received for the construction business amounted to 2,849.8 billion yen, a decrease of

312.0 billion yen (9.9%) from the previous fiscal year, due to a decline in the domestic building construction and civil engineering, and in the overseas civil engineering compared to the previous fiscal year which benefited from new orders for large-scale projects, and new orders being strategically received in alignment with the current construction capacity in the domestic building construction and civil engineering, despite an increase in new orders for large-scale projects in the overseas building construction. More specifically, orders received for domestic building construction were 1,200.9 billion yen; for overseas building construction, 788.1 billion yen; for domestic civil engineering, 444.2 billion yen; and for overseas civil engineering, 416.5 billion yen.

Non-consolidated orders received amounted to 1,604.8 billion yen, a decrease of 415.2 billion yen (20.6%) from the previous fiscal year. More specifically, orders received for building construction projects amounted to 1,164.9 billion yen, a decrease of 351.3 billion yen (23.2%) year-on-year; and for civil engineering projects, 439.9 billion yen, a decrease of 63.8 billion yen (12.7%).

Consolidated net sales for the construction business amounted to 2,409.3 billion yen, a decrease of

58.3 billion yen (2.4%) from the previous fiscal year, mainly reflecting a decline in the domestic building construction business which benefited from progress with large-scale projects, despite steady progress with projects in hand in the overseas building construction and in the domestic and overseas civil engineering. More specifically, net sales for domestic building construction were 1,138.7 billion yen; for overseas building construction, 507.9 billion yen; for domestic civil engineering, 426.6 billion yen; and for overseas civil engineering, 336.0 billion yen.

Operating profit amounted to 171.7 billion yen, an increase of 47.6 billion yen (38.3%) from the previous fiscal year, mainly due to factors including additional claim approvals and change orders, greater contribution from highly profitable construction projects in the domestic building construction, and steady progress with projects in hand in the overseas civil engineering.

Non-consolidated net sales amounted to 1,474.0 billion yen, a decrease of 162.3 billion yen (9.9%) from the previous fiscal year. More specifically, building construction sales amounted to 1,104.2 billion yen, a decrease of 193.4 billion yen (14.9%) year-on-year and civil engineering sales, 369.7 billion yen, an increase of 31.0 billion yen (9.2%) year-on-year.

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