Interim report
Page 1
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 . Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under Japanese GAAP ) August 5 , 2026 FASF MEMBERSHIP Company name : Listing : Takamatsu Construction Group Co. , Ltd. Tokyo Stock Exchange Securities code : 1762 URL : Representative : Inquiries : Inquiries : + 81-3-3455-8108 https://www.takamatsu-cg.co.jp/ Hirotaka Takamatsu , President and Representative Director of the Board Naomichi Takatsukasa , Officer 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 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Percentages indicate year - on - year changes . ) Profit attributable to owners of parent Millions of yen Three months ended Net sales Millions of yen Operating profit % Millions of yen % Ordinary profit Millions of yen % % June 30 , 2026 88,449 11.8 79,081 June 30 , 2025 Note : Comprehensive income For the three months ended June 30 , 2026 : For the three months ended June 30 , 2025 : 1.2 5,461 173.4 1,997 103.5 5,320 185.0 1,866 87.2 ¥ 3,363 million 3,292 309.4 804 382.3 810.4 % ] ¥ 369 million [ ( 9.7 % ) ] Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30 , 2026 94.56 23.10 June 30 , 2025 ( 2 ) Consolidated financial position Total assets Net assets Equity - to - asset ratio Millions of yen 294,504 314,734 Millions of yen % 147,323 146,926 50.0 46.7 ¥ 147,264 million ¥ 146,866 million As of June 30 , 2026 March 31 , 2026 Reference : Equity As of June 30 , 2026 : As of March 31 , 2026 : 2. Cash dividends Annual dividends per share Third quarter - end First quarter - end Second quarter - end Yen Fiscal year ended March 31 , 2026 Yen 45.00 Fiscal year ended March 31 , 2027 Fiscal year ended March 31 , 2027 72.00 ( Forecast ) Fiscal year - end Total Yen Yen 85.00 Yen 130.00 72.00 144.00 Note : Revisions to the forecast of cash dividends most recently announced : None 3. Consolidated forecast for the fiscal year ending March 31 , 2027 ( from April 1 , 2026 to March 31 , 2027 ) ( Percentages indicate year - on - year changes . ) Basic Orders received Net sales Operating profit Ordinary profit Profit attributable to owners of parent earnings per share % Full year Millions of yen 450,000 3.2 Note : Revisions to earnings forecasts most recently announced : None Millions % of yen 400,000 11.8 Millions % of yen 20,000 11.8 Millions of yen 19,500 % 11.4 Millions of yen 12,500 % 9.4 Yen 359.00
Page 2
* Notes (1) Significant changes in the scope of consolidation during the period: None Newly included － companies (―) Excluded － companies (―) (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 (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 34,818,578 shares As of March 31, 2026 34,818,578 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 111 shares As of March 31, 2026 111 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 34,818,467 shares Three months ended June 30, 2025 34,818,516 shares * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None * Proper use of earnings forecasts, and other special matters (Note on forward-looking statements) Forward-looking statements in this material are based on the information available to management at the time this report was prepared. Actual results may differ significantly from these statements for number of reasons.
Page 3
1 Index for Supplementary Information 1. Analysis of Operating Results and Financial Position..……...………………………………….. 2 (1) Overview of operating results…………………………………………………………………... 2 (2) Overview of financial position…………………………………………………………………... 2 (3) Explanation of consolidated earnings forecasts and other forward-looking statements………….. 3 2. Quarterly Consolidated Financial Statements and Major Notes…………………………..…… 4 (1) Quarterly consolidated balance sheet................................................................................ 4 (2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income… 6 Quarterly consolidated statement of income...................................................................... 6 Quarterly consolidated statement of comprehensive income……………………...……….. 7 (3) Notes on quarterly consolidated financial statements...................................................... 8 (Notes on segment information).......................................................................................... 8 (Notes on significant change in shareholders’ equity)........................................................ 9 (Notes on going concern assumption).................................................................................. 9 (Notes on consolidated statement of cash flows)................................................................ 9 3. Consolidated Orders Received and Net Sales…………………………………………….............. 9
Page 4
2 1. Analysis of Operating Results and Financial Position (1) Overview of operating results During the first quarter of the consolidated cumulative period, the Japanese economy continued on a moderate recovery trend, supported by improvements in the employment and income environment as well as an increase in nominal wages. On the other hand, the outlook remains uncertain due to persistent inflation, fluctuations in resource and energy prices amid heightened tensions in the Middle East, trends surrounding U.S. trade policy, and volatility in financial and capital markets. In the construction market, public investment remained resilient owing to national resilience measures and other factors. Private -sector construction investment also stayed firm, supported by robust corporate appetite for capital expenditure, resulting in a steady environment for orders. However, the earnings environment requires continued monitoring due to sustained high prices for construction materials and energy costs, as well as the tightening labor market. In the detached housing market, government housing support measures continued, and although mortgage interest rates trended upward, they had not reached a level that would materially dampen housing demand. This was driven by the potential for future interest rate hikes, high construction costs, and sluggish growth in real wages. During the first quarter of the consolidated cumulative period , orders received amounted to 106,995 million yen ( down 6.1% to the same period of the previous year), and net sales were 88,449 million yen ( up 11.8% to the same period of the previous year). Regarding profits, operating profit was 5,461 million yen ( up 173.4% to the same period of the previous year), ordinary profit was 5,320 million yen ( up 185.0% to the same period of the previous year) and profit attributable to owners of parent was 3,292 million yen ( up 309.4% to the same period of the previous year). Results by business segment are as follows. Segment profit is adjusted with operating profit in the quarterly consolidated statement of income. Adjustments to segment profit include -1,522 million yen in general and administrative expenses that do not belong to any reportable segment and -315 million yen in other adjustments. (Architecture) Orders received amounted to 61,657 million yen (down 11.0% to the same period of the previous year), net sales of completed construction contracts amounted to 40,750 million yen ( up 4.7% to the same period of the previous year), and segment profit was 3,336 million yen (up 83.1% to the same period of the previous year). (Civil Engineering) Orders received amounted to 24,966 million yen ( up 7.1% to the same period of the previous year), net sales of completed construction contracts amounted to 24,288 million yen (up 10.2% to the same period of the previous year), and segment profit was 1,515 million yen ( up 151.4% to the same period of the previous year). (Real Estate) Net sales from real estate sales and leasing amounted to 23,410 million yen ( up 29.2% to the same period of the previous year), and segment profit was 2,447 million yen ( up 142.5% to the same period of the previous year). (2) Overview of financial position (Assets) Total assets decreased by 20,230 million yen compared to the end of the previous consolidated fiscal year, amounting to 294,504 million yen. This was mainly due to an increase of 1,144 million yen in cash and deposits , an increase of 6,195 million yen in real estate for sale , an increase of 3,024 million yen in costs on real estate business and an increase of 1,877 million yen in investment securities, while there was a decrease of 32,771 million yen in notes receivable, accounts receivable from completed construction contracts and other. (Liabilities) Liabilities decreased by 20,627 million yen compared to the end of the previous consolidated fiscal year, amounting to 147,181 million yen. This was mainly due to an increase of 7,378 million yen in advances received on construction contracts in progress and an increase of 1,430 million yen in provision for bonuses, while there was a decrease of 5,681 million yen in accounts payable for construction contracts, a decrease of 18,720 million yen in short-term borrowings and a decrease of 3,121 million yen in income taxes payable.
Page 5
3 (Net Assets) Net assets increased by 396 million yen compared to the end of the previous consolidated fiscal year, amounting to 147,323 million yen. This was mainly due to an increase of 332 million yen in retained earnings due to the recording o f profit attributable to owners of parent of 3,292 million yen and the payment of dividends of 2,959 million yen. As a result of the above, the amount of shareholders' equity , excluding non-controlling interests, amounted to 147,264 million yen, and the shareholders' equity ratio increased by 3.3 percentage points compared to the end of the previous consolidated fiscal year, reaching 50.0%. (3) Explanation of consolidated earnings forecasts and other forward-looking statements There are no changes to the consolidated forecast for the fiscal year ending March 2027, from those announced on May 13, 2026.
Page 6
4 2. Quarterly Consolidated Financial Statements and Major Notes (1) Quarterly consolidated balance sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 ASSETS Current assets Cash and deposits 33,920 35,065 Notes receivable, accounts receivable from completed construction contracts and other 127,199 94,427 Real estate for sale 38,144 44,339 Costs on construction contracts in progress 1,709 1,843 Costs on real estate business 40,267 43,292 Accounts receivable - other 2,656 2,820 Other 2,827 2,765 Allowance for doubtful accounts (122) (87) Total current assets 246,602 224,467 Non-current assets Property, plant and equipment Buildings and structures, net 14,935 14,790 Machinery, vehicles, tools, furniture and fixtures, net 2,403 2,386 Vessels, net 1,064 1,148 Land 27,754 27,759 Leased assets, net 280 257 Construction in progress 16 37 Total property, plant and equipment 46,456 46,378 Intangible assets Goodwill 338 295 Other 1,076 1,088 Total intangible assets 1,414 1,384 Investments and other assets Investment securities 9,629 11,506 Deferred tax assets 8,499 8,595 Other 2,184 2,224 Allowance for doubtful accounts (52) (52) Total investments and other assets 20,261 22,274 Total non-current assets 68,132 70,037 Total assets 314,734 294,504
Page 7
5 (Millions of yen) As of March 31, 2026 As of June 30, 2026 LIABILITIES Current liabilities Accounts payable for construction contracts 36,433 30,751 Short-term borrowings 47,000 28,280 Income taxes payable 5,383 2,261 Advances received on construction contracts in progress 37,901 45,280 Provision for warranties for completed construction 581 544 Provision for bonuses 7,525 8,956 Other 13,191 11,045 Total current liabilities 148,016 127,120 Non-current liabilities Bonds payable 5,000 5,000 Deferred tax liabilities 517 530 Deferred tax liabilities for land revaluation 238 238 Provision for special repairs of vessels 43 48 Provision for incentive compensation 58 81 Retirement benefit liability 11,528 11,750 Other 2,405 2,412 Total non-current liabilities 19,791 20,061 Total liabilities 167,808 147,181 NET ASSETS Shareholders' equity Share capital 5,000 5,000 Capital surplus 797 797 Retained earnings 139,364 139,697 Treasury shares (0) (0) Total shareholders' equity 145,161 145,494 Accumulated other comprehensive income Valuation difference on available-for-sale securities 227 208 Revaluation reserve for land (1,248) (1,248) Foreign currency translation adjustment 1,616 1,762 Remeasurements of defined benefit plans 1,110 1,048 Total accumulated other comprehensive income 1,704 1,770 Non-controlling interests 59 58 Total net assets 146,926 147,323 Total liabilities and net assets 314,734 294,504
Page 8
6 (2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income Quarterly consolidated statement of income Three months ended June 30 (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Net sales Net sales of completed construction contracts 60,960 65,038 Sales in real estate business 18,120 23,410 Total net sales 79,081 88,449 Cost of sales Cost of sales of completed construction contracts 52,135 54,274 Cost of sales in real estate business 15,914 19,262 Total cost of sales 68,049 73,537 Gross profit Gross profit on completed construction contracts 8,825 10,764 Gross profit - real estate business 2,206 4,147 Total gross profit 11,032 14,912 Selling, general and administrative expenses 9,034 9,450 Operating profit 1,997 5,461 Non-operating income Interest income 2 41 Dividend income 150 14 Foreign exchange gains ― 34 Insurance claim income 4 37 Other 40 51 Total non-operating income 197 179 Non-operating expenses Interest expenses 74 174 Share of loss of entities accounted for using equity method 148 81 Foreign exchange losses 64 ― Other 42 65 Total non-operating expenses 329 321 Ordinary profit 1,866 5,320 Extraordinary income Gain on sale of non-current assets 0 2 Gain on sale of investment securities 24 ― Total extraordinary income 25 2 Extraordinary losses Loss on retirement of non-current assets 7 4 Total extraordinary losses 7 4 Profit before income taxes 1,884 5,318 Income taxes - current 1,545 2,041 Income taxes - deferred (468) (20) Total income taxes 1,077 2,020 Profit 807 3,298 Profit attributable to non-controlling interests 3 5 Profit attributable to owners of parent 804 3,292
Page 9
7 Quarterly consolidated statement of comprehensive income Three months ended June 30 (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Profit 807 3,298 Other comprehensive income Valuation difference on available-for-sale securities 29 (18) Foreign currency translation adjustment (211) 72 Remeasurements of defined benefit plans, net of tax (69) (62) Share of other comprehensive income of entities accounted for using equity method (186) 72 Total other comprehensive income (438) 65 Comprehensive income 369 3,363 Comprehensive income attributable to Comprehensive income attributable to owners of parent 366 3,357 Comprehensive income attributable to non-controlling interests 3 5
Page 10
8 (3) Notes on quarterly consolidated financial statements (Notes on segment information) Three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025) 1. Information of net sales, profit (loss) by reportable segment (Millions of yen) Reportable segments Adjustment (Note1) Amount on statement of income (Note 2) Architecture Civil engineering Real estate Total Net sales (of which to outside customers) 38,922 22,037 18,120 79,081 ― 79,081 (of which inter- segment or transfers) 218 25 318 561 (561) ― Total 39,141 22,063 18,439 79,643 (561) 79,081 Segment profit 1,822 603 1,009 3,434 (1,436) 1,997 Notes: 1. Adjustments to segment profit include general and administrative expenses of -1,458 million yen that cannot be allocated to reportable segments and 21 million yen of other adjustments. 2. Segment profit is adjusted to match with operating profit on the consolidated statement of income. 2. Information about impairment losses of non-current assets or goodwill, etc. by reportable segment None Three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) 1. Information of net sales, profit (loss) by reportable segment (Millions of yen) Reportable segments Adjustment (Note1) Amount on statement of income (Note 2) Architecture Civil engineering Real estate Total Net sales (of which to outside customers) 40,750 24,288 23,410 88,449 ― 88,449 (of which inter- segment or transfers) 1,822 5 284 2,112 (2,112) ― Total 42,572 24,294 23,694 90,561 (2,112) 88,449 Segment profit 3,336 1,515 2,447 7,300 (1,838) 5,461 Notes: 1. Adjustments to segment profit include general and administrative expenses of -1,522 million yen that cannot be allocated to reportable segments and -315 million yen of other adjustments. 2. Segment profit is adjusted to match with operating profit on the consolidated statement of income. 2. Information about impairment losses of non-current assets or goodwill, etc. by reportable segment None
Page 11
9 (Notes on significant change in shareholders’ equity) None (Notes on going concern assumption) None (Notes on consolidated statement of cash flows) The quarterly consolidated statement of cash flows for the three months ended June 30 has not been prepared. Depreciation (including amortization of intangible assets excluding goodwill) and amortization of goodwill for the first quarter are as follows. (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Depreciation 501 534 Amortization of goodwill 42 42 3. Consolidated Orders Received and Net Sales (Millions of yen, %) For three months ended June 30, 2025 For three months ended June 30, 2026 Changes (April 1, 2025 – June 30, 2025) (April 1, 2026 – June 30, 2026) Amount Share Amount Share Amount % Orders received Architecture construction 69,308 60.8 61,657 57.6 (7,650) (11.0) Civil engineering 23,301 20.5 24,966 23.4 1,664 7.1 Total construction 92,610 81.3 86,624 81.0 (5,986) (6.5) Real estate 21,353 18.7 20,371 19.0 (982) (4.6) Total 113,963 100.0 106,995 100.0 (6,968) (6.1) Net sales Architecture 38,922 49.2 40,750 46.1 1,827 4.7 Civil engineering 22,037 27.9 24,288 27.4 2,250 10.2 Total construction 60,960 77.1 65,038 73.5 4,078 6.7 Real estate 18,120 22.9 23,410 26.5 5,289 29.2 Total 79,081 100.0 88,449 100.0 9,367 11.8