Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
May 12, 2026
Consolidated results for FY2025
Net sales and all profit items hit record highs
Orders received decreased due to a transitional period between large-scale projects in the Water Environmental Business, although the Industrial Business performed strongly (however, order backlog hit a record high).
Net sales increased as projects progressed steadily in both businesses.
Operating profit increased, driven by improved profitability in the Industrial Business as well as higher revenue.
Profit attributable to owners of parent significantly increased due to gains from the sale of logistics facilities and cross-shareholdings.
YoY Change
vs. Previous Forecast
【Unit： 100 million yen】 | FY2024 Actual | FY2025 Actual | Change | FY2025 Forecast | Change |
Orders received | 1,822 | 1,542 | △280 | 1,500 | +42 |
Order backlog | 3,183 | 3,235 | +52 | 3,243 | △8 |
Net sales | 1,392 | 1,490 | +98 | 1,440 | +50 |
Operating profit | 89 | 98 | +9 | 95 | +3 |
Operating profit margin | 6.4% | 6.6% | +0.2% | 6.6% | +0.0% |
Profit attributable to owners of parent | 67 | 169 | +102 | 150 | +19 |
EBITDA | 127 | 135 | +8 | 130 | +5 |
Ｒ O I C | 5.2% | 6.0% | +0.8% | Upper 5% range | - |
R O E | 7.4% | 17.7% | +10.3% | About 16% | - |
【Orders Received, Net Sales, Operating profit by Segment 】
YoY Change vs. Previous Forecast
【Unit： 100 million yen】 | FY2024 Actual | FY2025 Actual | Change | FY2025 Forecast | Change | |
Orders received | Water Environmental | 1,369 | 936 | △433 | 900 | +36 |
Industrial | 439 | 600 | +161 | 594 | +6 | |
Net sales | Water Environmental | 927 | 986 | +59 | 940 | +46 |
Industrial | 452 | 497 | +45 | 494 | +3 | |
Operating profit | Water Environmental （Operating profit margin） | 61 6.6% | 58 5.9% | △3 △0.7% | 60 6.4% | △2 △0.5% |
Industrial （Operating profit margin) | 21 4.7% | 41 8.2% | +20 +3.5% | 32 6.5% | +9 +1.7% | |
Note: As figures related to "Other Business" are excluded, totals do not match consolidated figures.
©Tsukishima Holdings Co., Ltd. All Rights Reserved. 2
Consolidated results for FY2025（Orders received, Net sales)
Orders received
【Water Environmental】 Results decreased.
Net sales
【Water Environmental 】 Net sales increased.
Other : Segment related to real estate management and leasing
Due to a transitional period between large-scale projects, orders received decreased significantly (although in line with initial assumptions).
Water infrastructure: Secured 1 sewage sludge incinerator project (3 projects in FY2024). Life cycle business: Secured 1 PFI/DBO project (5 projects in FY2024).
【Industrial】 Results increased.
Industrial infrastructure: Secured orders for equipment such as filters and dryers for chemical applications.
Environment: Increased significantly, securing Large-scale projects including waste fluid incineration and solid waste treatment facilities.
【Other】
Orders received decreased due to the sale of logistics facilities.
Water infrastructure: Multiple sewage sludge incinerator projects progressed, and the sewage sludge-to-fuel system for Chiba City was completed.
Life cycle business: Large-scale comprehensive O&M commission projects progressed steadily, while repair works also showed solid performance
【Industrial】 Net sales increased.
Industrial infrastructure: Plants for chemical and foodstuff applications progressed, with orders for dryers for chemical applications and mixers for cosmetics contributing to results. Environment: Waste incineration projects progressed, and wastewater treatment projects for the semiconductor sector contributed to results.
【Other】
Net sales decreased due to the sale of logistics facilities.
Unit： 100 million yen
Water Environmental Industrial Other
Water Environmental Industrial Other
2,000
1,600
1,200
800
400
0
1,822
14
439
1,369
△280
△8
+161
1,542
6
600
Comparison of the Number of Large-
936
△433
986
+59
Scale Projects (Water Environmental )
Unit： 100 million yen
1,500
1,200
900
FY2024 | FY2025 |
10 projects EPC 4 projects O&M 6 projects | 3 projects EPC 1 project O&M 2 projects |
600
300
0
1,392
13
452
927
+98
△7
+45
1,490
6
497
FY2024 FY2025
©Tsukishima Holdings Co., Ltd. All Rights Reserved.
FY2024 FY2025
3
Consolidated results for FY2025（Operating profit )
Operating profit
【Water Environmental】 Despite increased revenue, profit decreased due to increased SG&A resulting from increased human capital investment and R&D expenses, the elimination of prior-year loss recoveries, and budget overruns in certain projects.
【Industrial】 Profit increased due to higher revenue and contributions from certain projects with improved profitability.
【Other】 Profit declined due to the sale of logistics facilities (in 2Q, September 2025) and temporary factors such as size-based enterprise tax.
Unit： 100 million yen
120
+11
Water Environmental
Industrial Other
+10
100
89
80
60
40
20
+11
△ 7
〔 Water Environmental 〕
・Elimination of prior-year loss recoveries
・Decline in profit margins due to budget overruns in certain projects
〔 Industrial 〕
・Improved profitability in certain projects
98
△ 1
△ 7
△ 8
〔Common〕
・Human capital investment
(base salary increase, mid-career hiring)
〔Water Environmental〕
・Increased R&D expenses
・DX investment (remote monitoring systems, etc.)
0
FY2024
Revenue effect
Profit margin effect
Selling, general and administrative expenses
Other
FY2025
©Tsukishima Holdings Co., Ltd. All Rights Reserved. 4
Forecast for FY2026
Impact of military conflict in the Middle East
Although we do not expect a significant impact on overall business performance, we are closely monitoring the situation, as the potential impacts listed below are anticipated.
[ Orders received ]
Potential impact on customers' capital investment decisions in the Industrial Business. [ Net sales, Operating profit ]
Increased costs due to rising prices and delivery delays due to procurement difficulties of petroleum-derived products
Challenges in securing utilities (chemicals, etc.) for operation and maintenance business in the Water Environmental Business, as well as rising costs.
⇒Although we plan to recover costs through negotiations with customers,
the magnitude and outlook of the impact remain difficult to estimate at this point.
Orders received, net sales, and operating profit are expected to hit record highs
Orders received are expected to increase, supported by large-scale projects in the Water Environmental Business and continued strong performance in the Industrial Business.
Net sales are expected to increase as projects in the order backlog progress in both businesses.
Operating profit is expected to increase, mainly due to higher profit in the Water Environmental Business.
Profit attributable to owners of parent is expected to decrease due to the absence of gains from the sale of logistics facilities in the previous fiscal year.
【Unit： 100 million yen】 | FY2025 Actual | FY2026 Forecast | Change |
Orders received | 1,542 | 1,900 | +358 |
Order backlog | 3,235 | 3,615 | +380 |
Net sales | 1,490 | 1,520 | +30 |
Operating profit | 98 | 110 | +12 |
Operating profit margin | 6.6% | 7.2% | +0.6% |
Profit attributable to owners of parent | 169 | 85 | △84 |
EBITDA | 135 | 146 | +11 |
R O I C | 6.0% | around 7% | - |
R O E | 17.7% | mid 8% range | - |
【Orders Received, Net Sales, Operating profit by Segment 】
【Unit： 100 million yen】 | FY2025 Actual | FY2026 Forecast | Change | |
Orders received | Water Environmental | 936 | 1,300 | +364 |
Industrial | 600 | 600 | ±0 | |
Net sales | Water Environmental | 986 | 1,000 | +14 |
Industrial | 497 | 520 | +23 | |
Operating profit | Water Environmental （Operating profit margin） | 58 | 70 | +12 |
5.9% | 7.0% | +1.1% | ||
Industrial （Operating profit margin) | 41 | 43 | +2 | |
8.2% | 8.3% | +0.1% | ||
©Tsukishima Holdings Co., Ltd. All Rights Reserved.
Note: As figures related to "Other Business" are excluded, totals do not match consolidated figures.
5
【Water Environmental】
Demand for facility upgrades remains strong in response to aging of domestic water and wastewater infrastructure.
The transitional period between large-scale projects seen in the previous term is expected to be resolved and a significant increase is expected.
Water infrastructure: Large-scale projects are expected, including sewage sludge incinerators and equipment for water purification plants.
Life cycle business: Multiple large-scale comprehensive O&M projects are expected.
Orders received
Unit： 100 million yen
Water Environmental Industrial Other
2,000
1,500
1,000
1,5426
600
+358
±0
△6
1,9000
600
1,300
+364
936
【Industrial】
The favorable demand environment observed in chemical, life science and environmental fields in the previous term is expected to continue.
In the chemical field, demand remains strong for higher value-added products as well as environmentally friendly products, including those that address defossilization driven by geopolitical developments in the Middle East and promote recycling. Demand for waste treatment facilities also continues to be robust.
Industrial infrastructure: Orders are expected to continue for chemical plants, as well as equipment such as filters and mixers.
Environment: Orders are expected for waste incineration facilities, construction and repair works of incinerators.
As the situation in the Middle East may affect our customers' capital investment decisions, we are closely monitoring the situation.
500
0
FY2025 FY2026
[Forecast]
©Tsukishima Holdings Co., Ltd. All Rights Reserved. 6
Forecast for FY2026 （Net Sales）
Net Sales
Unit： 100 million yen
Water Environmental Industrial Other
1,500
1,490＋30
1,520【Water Environmental】
Order backlog at beginning of term remains at a high level. With sufficient secured revenue base, sales growth is expected.
Major sales projects are expected to include multiple sewage sludge incinerator projects.
Orders for PPP projects such as PFI and DBO are strong, and with the increasing scale of these projects, the proportion of long-term contracts is on the rise (Please see page 9).
0
＋23
497
△6
6
520
【Industrial】
Net sales are expected to increase as progress is made on secured orders.
Key sales projects in the industrial infrastructure segment include equipment such as dryers and filters, as well as chemical plants. In the environmental segment, net sales are expected from waste liquid incineration and solid waste treatment facilities.
1,000
1,000
＋14
986
500
【Sales Composition (Common)】
For both businesses, approx. 60% of the sales mix is expected to be derived from already secured orders.
Including after-sales services and operation & maintenance, around 80% of net sales is expected to be secured.
0
FY2025 FY2026
[Forecast]
©Tsukishima Holdings Co., Ltd. All Rights Reserved. 7
Forecast for FY2026 （Operating Profit）
Operating Profit
【Water Environmental】 Profit is expected to increase due to improved profitability, despite continuing investments in human capital (including base salary increases) and increased research and development expenses.
【Industrial】 Profit is expected to increase due to revenue growth, despite the impact of increased investments in human capital and a decrease of the prior-year reversal of allowance for doubtful accounts.
Unit： 100 million yen
120
98
100
43
70
＋12
110
Unit： 100 million yen
140
120
+15
〔 Common 〕
・Human capital investment
（Base salary increase, mid-career hiring）
〔 Water Environmental 〕
・Increased R&D expenses
〔 Industrial 〕
・Elimination of prior-year reversal of allowance for doubtful accounts
〔 Water Environmental 〕
・The impact of margin deterioration caused by budget overruns in certain projects in the previous fiscal year is expected to be resolved
〔 Industrial 〕
・Impact of several low-profitability projects
+6 △ 3
Water Environmental
Industrial Other110
80
60
40
20
FY2025
0 △1
+2
58
41
+12
△2 △3
(20) FY2025 FY2026
[Forecast]
FY2026
100
80
60
40
20
0
98 +3
FY2025
△ 6 △ 2
Profit margin effect
Revenue effect
Selling, general and administrative expenses
△ 1
Other
FY2026
[Forecast]
©Tsukishima Holdings Co., Ltd. All Rights Reserved. 8
Forecast for FY2026 : Order trend and order backlog for Water Environmental Business
Order Trends
Orders received decreased in FY2025 due to a transitional period between large-scale projects.
In FY2026, a significant increase is expected, including multiple large-scale projects.
Order backlog remains at a high level, ensuring that sufficient resources for sales have been secured.
Breakdown of Order backlog
Order backlog at beginning of fiscal year remains at a high level of 271.5 billion yen
The ratio of water infrastructure (EPC) to life cycle business (O&M) is approx. 30:70
In Water infrastructure, construction periods tend to become longer due to delays in separately contracted civil engineering works, growing scale of projects and restrictions on overtime work.
In Life cycle business, the proportion of long-term projects is on the rise as orders for PPP projects such as PFI and DBO remain strong, with the increasing volume of these projects.
Unit： 100 million yen
3,000
2,500
Order backlog at the beginning of the fiscal year
2,765 2,715
2,323
～FY2026
2,000
Water Infrastructure
Life cycle Business
～FY2029
Water
Life cycle
1,500
1,369
1,300
Infrastructure
FY2026
Business
1,000
500
0
724
645
936
398
538
685
615
FY2030～
Order backlog at beginning of fiscal year
271.5 billion yen
FY2030～
【Large projects】
FY2024 FY2025 FY2026
[Forecast]
4 items
1 item
6 items
2 items
EPC(incineration etc)
Comprehensive O&M、PPP
An increase is expected year on year.
～FY2026
～FY2029
©Tsukishima Holdings Co., Ltd. All Rights Reserved. 9
Capital Allocation（Cumulative over 4 years）Disposal of non-operating assets・・・The real estate (logistics facilities) has been sold, and the sale of cross-shareholdings is being promoted.
The generated cash will be utilized for shareholder returns, strategic investments, M&A, human capital investment, etc.
Cash inflows
Cash outflows
8～10 billion yen
[Cancellation of Treasury Shares] In FY25, 4 million shares of treasury stock were cancelled.
Working to flexibly acquire treasury shares through balance sheet management
⇒FY25: Acquired 12.8 billion yen of treasury shares
(approx. 4.3 million shares)
・Actual acquisition of treasury shares (3 years) :
13.9 billion yen
・Total dividends paid （3 years* ) : 8.6 billion yen
* Including FY25 year-end dividends
Capital investment
Cash flow from operations
・Actual sale proceeds （3 years）:
9.3 billion yen
Sale of
cross-shareholdings
The logistics facility was sold to Mitsui Fudosan, our partner in its joint development.
Transfer Price 21.7 billion yen Gain on sale 12.0 billion yen
12 billion yen or more
Sale of
real estate assets Sold logistics facilities
Debt funding etc.
Shareholder returns
Strategic investment 15 - 22 billion yen
Investment in growth strategy (M&A)
[Track Record of
R&D investment , human capital investment
DX investment, etc.
Actual result （3 years）: 14.3 billion yen
DX and IT Investments]
【M&A（Water Environmental Business ）】
Acquired a company engaged in operation and management of water and wastewater treatment facilities（Expansion of the stock-based business）
The integration of JFE Engineering's water supply steel pipe business is under continued discussion, with the execution of the final agreement postponed.
A new centralized monitoring center for water and sewage facilities has been established.
(Tsukishima JFE Aqua Solution）
※If external funding is required, respond flexibly, including through debt financing.
©Tsukishima Holdings Co., Ltd. All Rights Reserved. 10
Shareholder Return policy （Enhancing Returns to Shareholders）
Shareholder return policy: "The level of stable dividends will be set with a minimum DOE of 3.5%, and a total return ratio will be 50% or more."
Dividend for FY2025: 83 yen per share plus a commemorative dividend of 2 yen, totaling 85 yen per share.
Dividend for FY2026: The Company aims to maintain stable dividends and continue increasing dividends, with a planned dividend of 88 yen per share.
150%
Dividend per share (yen) Commemorative dividends (yen)Total return ratio
(※)
(※) (Average number of shares outstanding during the period × dividend per share + amount of treasury share acquisition) ÷ profit attributable to owners of parent
100%
50%
33.3%
108.9%
16.1% 41.6%
97.2%
55.0%
96.3%
85
278
0%
-50%
-100%
8340
24
24
30
5
35
42
Dividend on Equity （DOE）
FY2026
FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
1.6% | 1.5% | 1.8% | 2.2% | 2.1% | 3.7% | 3.5% |
(Forecast)
©Tsukishima Holdings Co., Ltd. All Rights Reserved. 11