Consolidated Financial Results for the Three Months Ended June 30, 2025 NEW!

Consolidated Financial Results

for the Three Months Ended June 30, 2025 [Japanese GAAP]

August 6, 2025

Company name: OKUMURA CORPORATION Listing: Tokyo Stock Exchange Securities code: 1833

URL: https://www.okumuragumi.co.jp/

Representative: Takanori Okumura President and Representative Director

Inquiries: Shunsuke Okuda General Manager of Finance & Accounting Department, Administration Headquarters Telephone: +81-6-6621-1101

Scheduled date to commence dividend payments: -Preparation of supplementary material on financial results: Yes Holding of financial results briefing: None

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

1. Consolidated Financial Results for the Three Months Ended June 30, 2025 (April 1, 2025 to June 30, 2025)

   1. Consolidated Operating Results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Three months ended June 30, 2025 June 30, 2024	Millions of yen 69,792 66,405	% 5.1 2.7	Millions of yen 4,139 158	% - (88.7)	Millions of yen 3,983 1,152	% 245.8 (48.8)	Millions of yen 3,693 1,251	% 195.2 (44.8)

      (Note) Comprehensive income:	Three months ended June 30, 2025:	¥	2,270 million	[	-%]
      	Three months ended June 30, 2024:	¥	(48) million	[	-%]

      	Basic earnings per share	Diluted earnings per share
      Three months ended	Yen	Yen
      June 30, 2025	102.90	-
      June 30, 2024	33.97	-

   2. Consolidated Financial Position

   	Total assets	Net assets	Capital adequacy ratio
   As of June 30, 2025 March 31, 2025	Millions of yen 379,150 393,466	Millions of yen 169,384 172,455	% 46.2 45.1

   (Reference) Equity: As of June 30, 2025:	¥	175,132 million
   As of March 31, 2025:	¥	177,285 million

2. Dividends

   	Annual dividends
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
   Fiscal year ended March 31, 2025 Fiscal year ending March 31, 2026	Yen - -	Yen 113.00	Yen -	Yen 103.00	Yen 216.00
   Fiscal year ending March 31, 2026 (Forecast)		110.00	-	110.00	220.00

   (Note) Revision to the forecast for dividends announced most recently: None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026(April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

(Note) Revision to the financial results forecast announced most recently: None

* Notes:

1. Significant changes in the scope of consolidation during the period: None

   Newly included:	- (Company name:	)
   Excluded:	- (Company name:	)

2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None

3. 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: None

   3. Changes in accounting estimates: None

   4. Restatement: None

4. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares): June 30, 2025: 38,665,226 shares

      March 31, 2025: 38,665,226 shares

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

      June 30, 2025: 2,815,867 shares

      March 31, 2025: 2,440,729 shares

   3. Average number of shares outstanding during the period:

Three months ended June 30, 2025: 35,894,058 shares

Three months ended June 30, 2024: 36,827,866 shares

Note: The Company has introduced the Employee Share Award Plan. Shares of the Company held in the plan's trust account are included in the number of treasury shares at the end of the period (269,200 shares as of June 30, 2025, and 273,700 shares as of March 31, 2025,). Shares of the Company held in the plan's trust account are also included in the number of treasury shares deducted when calculating the average number of shares outstanding during the period (269,476 shares and 274,715 shares in Three months ended June 30, 2025 and 2024, respectively).

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes(voluntary)

• Proper use of earnings forecasts, and other special matters

In accordance with a resolution passed at the meeting of the Board of Directors held on July 14, 2025, the Company is planning to execute a disposal of treasury shares as restricted stock compensation on August 8, 2025. The amounts shown in "Fiscal year ending March 31, 2026 (Forecast)" under "2. Dividends" and "Basic earnings per share" under "3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026" take into account the effect of this disposal of treasury shares.

The performance forecasts and other forward-looking statements contained in this document are based on information available at the time of publication and certain assumptions considered reasonable by the Company. The Company does not provide any guarantee that these forecasts will be achieved, and actual results may differ significantly due to various factors. Please refer to "1. Overview of Operating Results, etc. (3)Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements" on page 3 of the Attachment for details of the conditions assumed in the financial results forecast and precautions regarding the use of the financial results forecast.

The financial results supplementary material will be disclosed through TDnet and posted on the Company's website today.

(Reference) Overview of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Three Months Ended June 30, 2025 (April 1, 2025 to June 30, 2025)

   1. Non-consolidated Operating Results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Net income
      Three months ended June 30, 2025 June 30, 2024	Millions of yen 69,034 64,189	% 7.5 4.3	Millions of yen 4,536 756	% 499.6 (48.9)	Millions of yen 5,803 2,043	% 184.0 (23.5)	Millions of yen 4,630 1,762	% 162.7 (31.7)

      	Basic earnings per share	Diluted earnings per share
      Three months ended	Yen	Yen
      June 30, 2025	129.00	-
      June 30, 2024	47.86	-

   2. Non-consolidated Financial Position

   	Total assets	Net assets	Capital adequacy ratio
   As of June 30, 2025 March 31, 2025	Millions of yen 348,171 360,065	Millions of yen 168,562 169,795	% 48.4 47.2

   (Reference) Equity: As of June 30, 2025:	¥	168,562 million
   As of March 31, 2025:	¥	169,795 million

2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026(April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

(Note) Revision to the financial results forecast announced most recently: None

* Proper use of earnings forecasts, and other special matters

In accordance with a resolution passed at the meeting of the Board of Directors held on July 14, 2025, the Company is planning to execute a disposal of treasury shares as restricted stock compensation on August 8, 2025. The amounts shown in "Basic earnings per share" under "2. Non-Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026" take into account the effect of this disposal of treasury shares.

The performance forecasts and other forward-looking statements contained in this document are based on information available at the time of publication and certain assumptions considered reasonable by the Company. The Company does not provide any guarantee that these forecasts will be achieved, and actual results may differ significantly due to various factors.

Table of Contents - Attachments

1. Overview of Operating Results, etc 2

   1. Overview of Operating Results for the Period under Review 2

   2. Overview of Financial Position for the Period under Review 3

   3. Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements 3

2. Quarterly Consolidated Financial Statements and Primary Notes 4

   1. Quarterly Consolidated Balance Sheet 4

   2. Quarterly Consolidated Statements of Income and Comprehensive Income 6

   3. Notes to Consolidated Financial Statements 8

(Segment information, etc.) 8

(Notes on noteworthy changes in shareholders' equity) 9

(Notes on going concern assumption) 9

(Notes to Consolidated Statements of Cash Flows) 9

(Additional information) 9

1. Overview of Operating Results, etc.

   1. Overview of Operating Results for the Period under Review

      During the three months ended June 30, 2025, the Japanese economy continued to recover moderately amid improvements in the employment and income environment, despite the uncertainty caused by US trade policies. In the construction industry, the situation continued to require close attention to rising construction costs, such as the trends in material and equipment prices and labor costs, despite strong construction investment in both the public and private sectors.

      At the Group, net sales for the three months ended June 30, 2025 increased by 5.1% year on year to ¥69,792 million, due mainly to firm progress in the Construction Business on projects carried over from the previous fiscal year. In terms of profit and loss, gross profit increased by 63.9% year on year to ¥9,485 million due to an improvement in the gross profit margin of the Construction Business, among other factors. Operating profit was ¥4,139 million (compared to ¥158 million in the same period of the previous year). Ordinary profit increased by 245.8% year on year to ¥3,983 million, and profit attributable to owners of parent increased by 195.2% year on year to ¥3,693 million.

      On July 19, 2024, an explosion occurred at the power generation equipment of ISHIKARI BIO ENERGY GODO KAISHA, a consolidated subsidiary, resulting in the failure to meet the criteria for hedge accounting. As a result, hedge accounting has been discontinued as of the second quarter (interim period) of the fiscal year ended March 31, 2025. In the three months ended June 30, 2025, loss on valuation of forward exchange contracts related to ISHIKARI BIO ENERGY GODO KAISHA has been recorded as non-operating expenses. For details, refer to the "Notice Concerning the Recording of Non-operating Expenses (Loss on Valuation of Forward Exchange Contracts)" released separately today.

      Operating results by segment are as follows. (Civil Engineering)

      Net sales increased by 1.1% year on year to ¥23,686 million. The profitability of the backlog of projects from the previous fiscal year improved with orders awarded for additional work, lower costs and other factors, improving the gross profit margin and leading to operating profit increasing by 379.4% year on year to ¥2,082 million.

      Orders received decreased by 26.6% year on year to ¥22,158 million. (Building)

      Net sales increased by 11.9% year on year to ¥43,977 million. The profitability of the backlog of projects from the previous fiscal year improved with orders awarded for additional work, lower costs and other factors, improving the gross profit margin and leading to operating profit of ¥1,919 million (compared to an operating loss of ¥303 million in the same period of the previous year).

      In addition, due to the securing of orders for large-scale construction projects in Japan, orders received increased by 76.1% year on year to ¥26,829 million.

      (Investment Development)

      The Investment Development Business comprises business related to the sale and leasing of real estate and the renewable energy business. In conjunction with the suspension of commercial operation by ISHIKARI BIO ENERGY GODO KAISHA, a consolidated subsidiary, net sales decreased by 41.6% year on year to

      ¥1,628 million. However, reductions in regular inspection costs and depreciation of the company's power generation equipment, among other factors, brought operating profit to ¥109 million (compared to an operating loss of ¥80 million for the same period in the previous fiscal year).

      (Other)

      Other business refers to the manufacture and sale of construction machinery, equipment, etc. Net sales decreased by 42.0% year on year to ¥500 million, resulting in operating losses of ¥16 million (compared to an operating profit of ¥96 million in the same period of the previous fiscal year).

   2. Overview of Financial Position for the Period under Review Status of assets, liabilities and net assets

      (Assets)

      Total assets amounted to ¥379,150 million, a decrease of ¥14,315 million from the end of the previous fiscal year. This was due mainly to a decrease in notes receivable, accounts receivable from completed construction contracts and other.

      (Liabilities)

      Total liabilities amounted to ¥209,766 million, a decrease of ¥11,244 million from the end of the previous fiscal year, because although long-term borrowings increased, notes payable, accounts payable for construction contracts and other and short-term borrowings decreased.

      (Net assets)

      Total net assets amounted to ¥169,384 million, a decrease of ¥3,071 million from the end of the previous fiscal year. This was mainly due to the purchase of treasury shares and a decrease in valuation difference on available-for-sale securities.

   3. Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements

   There are no changes to the full-year consolidated financial results forecast for the fiscal year ending March 31, 2026 that was released at the time of the financial results briefing held on May 14, 2025. For more details on the financial results forecast, see "1. Consolidated Results and Forecasts" on Page 1 and "2. Non-consolidated Results and Forecasts" on Page 2 of the "Financial Results Supplementary Materials for the First Quarter of the Fiscal Year Ending March 31, 2026" announced separately today.

   Gains and losses on valuation of forward exchange contracts recorded by ISHIKARI BIO ENERGY GODO KAISHA, a consolidated subsidiary, are not included in non-operating income and expenses in the consolidated financial results forecast. The Company's consolidated financial result may be significantly impacted by movements in foreign exchange markets in the future.

2. Quarterly Consolidated Financial Statements and Primary Notes (1)Quarterly Consolidated Balance Sheet

(Millions of yen)

As of March 31, 2025 As of June 30, 2025

Assets

Current assets

(Millions of yen)

As of March 31, 2025 As of June 30, 2025

Liabilities

Current liabilities

1. Quarterly Consolidated Statements of Income and Comprehensive Income

   Quarterly Consolidated Statement of Income For the three months ended June 30, 2025

   For the three months ended June 30, 2024

   (Millions of yen)

   For the three months ended June 30, 2025

   Net sales

   Net sales of completed construction contracts 62,753 67,663

   Net sales of real estate investment, development business and other

   3,651

   2,128

   Total net sales 66,405 69,792

   Cost of sales

   Cost of sales of completed construction contracts 57,448 58,748

   Cost of real estate investment, development business and other

   3,170

   1,558

   Total cost of sales 60,618 60,306

   Gross profit

   Gross profit on completed construction contracts 5,305 8,915

   Gross profit on real estate investment, development business and other	481	570
   Total gross profit	5,786	9,485
   Selling, general and administrative expenses	5,628	5,346
   Operating profit	158	4,139
   Non-operating income
   Interest income	23	35
   Dividend income	739	668
   Foreign exchange gains	324	578
   Other	61	58
   Total non-operating income	1,148	1,341
   Non-operating expenses
   Interest expenses	149	194
   Loss on valuation of forward exchange contracts	-	1,176
   Other	5	125
   Total non-operating expenses	155	1,496
   Ordinary profit	1,152	3,983
   Extraordinary income
   Gain on sale of investment securities	563	882
   Other	-	0
   Total extraordinary income	563	883
   Extraordinary losses
   Loss on valuation of investment securities	-	6
   Loss on retirement of non-current assets	21	16
   Total extraordinary losses	21	22
   Profit before income taxes	1,693	4,844
   Income taxes - current	451	1,837
   Income taxes - deferred	401	222
   Total income taxes	853	2,060
   Profit	840	2,783
   Loss attributable to non-controlling interests	(411)	(909)
   Profit attributable to owners of parent	1,251	3,693

   Quarterly Consolidated Statement of Comprehensive Income For the three months ended June 30, 2025

   For the three months ended June 30, 2024

   (Millions of yen)

   For the three months ended June 30, 2025

   Profit 840 2,783

   Other comprehensive income

   Valuation difference on available-for-sale securities (3,432) (403)

Deferred gains or losses on hedges 2,612 (16)

Remeasurements of defined benefit plans, net of tax (68) (92)

Total other comprehensive income (888) (513)

Comprehensive income (48) 2,270

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

(943)

3,188

Comprehensive income attributable to non-controlling

interests

895 (918)

1. Notes to Quarterly Consolidated Financial Statements

   The Company's quarterly consolidated financial statements have been prepared in accordance with Article 4, Paragraph 1 of the standards for the preparation of quarterly financial statements, etc. of the Tokyo Stock Exchange, Inc. and other accounting standards for quarterly financial statements generally accepted in Japan (except for the omissions specified in Article 4, Paragraph 2 of the standards for the preparation of quarterly financial statements, etc.).

   (Segment information, etc.) [Segment information]

   For the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)

   Information on net sales and income (loss) by reportable segment

   (Millions of yen)

   	Reportable segment				Other (Note 1)	Total	Adjustment (Note 2)	Amount recorded in Quarterly Consolidated Statement of Income (Note 3)
   	Civil Engineering	Building	Investment Development	Total
   Net sales
   Net sales to external customers	23,438	39,315	2,789	65,543	862	66,405	-	66,405
   Inter-segment net sales or transfers	-	-	9	9	315	324	(324)	-
   Total	23,438	39,315	2,798	65,552	1,177	66,730	(324)	66,405
   Segment profit (loss)	434	(303)	(80)	50	96	147	11	158

   Notes. 1. The "Other" category is a business segment not included in reportable segments. It includes such operations as the manufacture and sale of construction machinery, equipment, etc.

   1. The segment profit (loss) adjustment of ¥11 million is mainly eliminations of inter-segment transactions.

   2. Segment profit (loss) is adjusted to the operating profit figure on the Quarterly Consolidated Statements of Income.

For the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025)

Information on net sales and income (loss) by reportable segment

(Millions of yen)

Notes. 1. The "Other" category is a business segment not included in reportable segments. It includes such operations as the manufacture and sale of construction machinery, equipment, etc.

1. The segment profit (loss) adjustment of ¥44 million is mainly eliminations of inter-segment transactions.

2. Segment profit (loss) is adjusted to the operating profit figure on the Quarterly Consolidated Statements of Income.

(Notes on noteworthy changes in shareholders' equity) Not applicable.

(Notes on going concern assumption) Not applicable.

(Notes to Consolidated Statements of Cash Flows)

Quarterly consolidated statements of cash flows have not been prepared for the three months ended June 30, 2025.

Depreciation (including amortization related to intangible assets excluding goodwill) and amortization of goodwill for the three months ended June 30, 2025 are as follows..

For the three months ended June 30, 2024

(April 1, 2024 - June 30, 2024)

For the three months ended June 30, 2025

(April 1, 2025 - June 30, 2025)

Depreciation ¥988million ¥742million Amortization of goodwill 7 －

(Additional information) (Financial covenants)

The Company has recognized a breach in the financial covenants for non-recourse borrowings by ISHIKARI

BIO ENERGY GODO KAISHA, a consolidated subsidiary. The Company has concluded an additional loan agreement with ISHIKARI BIO ENERGY GODO KAISHA to support its day-to-day cash flow. The lender has not exercised its right to demand early repayment.