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Revision of earnings forecasts7985NEPON Inc.Construction and Materials

Notice Regarding Differences Between the Full-Year Consolidated Financial Forecast and Actual Results for the Fiscal Year Ending March 2026

The difference between the full-year consolidated results for the fiscal year ending March 2026 and the forecast announced on 15 May 2025 was disclosed. Net sales, operating profit and ordinary profit exceeded the forecasts, while net income attributable to owners of the parent fell below the forecast due to the recognition of an extraordinary loss.

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Revised forecast

Fiscal year ending March 2026 · Full yearPrevious forecast published 15 May 2025
Net Sales7,300→7,417million
+1.6%
Operating profit50→70million
+41.2%
Ordinary income50→78million
+57.2%
Profit attributable to owners of the parent40→37million
-5.6%
Net income per share—→—yen
-5.7%

The bar length represents the relative magnitude of change, based on the item that changed the most in this document.

Reason for the revision

The revision reflects increased orders for large-scale construction projects involving low-cost horticultural facilities resilient to climate disasters, as well as road-heating installation projects and other work, which increased net sales; reductions in raw material procurement costs and reviews of various expenses, which increased operating profit; subsidy income related to the development of smart horticultural facility technologies and other items, which increased ordinary profit; and the recognition of soil contamination remediation costs arising from a heavy oil spill as an extraordinary loss, which reduced net income attributable to owners of the parent.

Details and amount of extraordinary loss

Soil contamination remediation costs in certain areas arising from a heavy oil spill. Amount: Not disclosed.

Previous-period resultsFiscal year ended March 2025: net sales ¥7,277 million, operating profit ¥35 million, ordinary profit ¥73 million, net loss attributable to owners of the parent ¥283 million, basic earnings per share -¥296.13
Consolidated / non-consolidatedConsolidated
Revised forecast
ItemDetails
Net Sales¥7,300 million → ¥7,417 million(+1.6%)
Operating profit¥50 million → ¥70 million(+41.2%)
Ordinary income¥50 million → ¥78 million(+57.2%)
Profit attributable to owners of the parent¥40 million → ¥37 million(-5.6%)
Net income per share¥41.78 → ¥39.41(-5.7%)
Fiscal Period CoveredFiscal year ending March 2026
Period CoveredFull year
Publication date of previous forecast15 May 2025
Previous-period resultsFiscal year ended March 2025: net sales ¥7,277 million, operating profit ¥35 million, ordinary profit ¥73 million, net loss attributable to owners of the parent ¥283 million, basic earnings per share -¥296.13
Reason for the revisionThe revision reflects increased orders for large-scale construction projects involving low-cost horticultural facilities resilient to climate disasters, as well as road-heating installation projects and other work, which increased net sales; reductions in raw material procurement costs and reviews of various expenses, which increased operating profit; subsidy income related to the development of smart horticultural facility technologies and other items, which increased ordinary profit; and the recognition of soil contamination remediation costs arising from a heavy oil spill as an extraordinary loss, which reduced net income attributable to owners of the parent.
Details and amount of extraordinary lossSoil contamination remediation costs in certain areas arising from a heavy oil spill. Amount: Not disclosed.
Consolidated / non-consolidatedConsolidated
Items this document does not state (1)
Dividend forecast revision

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Net sales exceeded the forecast due to increased orders in the company's core areas. Operating profit exceeded the forecast due to reductions in raw material procurement costs, selling, general and administrative expenses, and other costs. Ordinary profit exceeded the forecast due to non-operating income, including subsidy income. Meanwhile, net income attributable to owners of the parent fell below the forecast due in part to the recognition of soil contamination remediation costs arising from a heavy oil spill as an extraordinary loss.

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Notice Regarding Differences Between the Full-Year Consolidated Financial Forecast and Actual Results for the Fiscal Year Ending March 2026 | NEPON Inc. (7985) timely disclosure | Komori