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 . TOTETSU Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under Japanese GAAP ) FASF MEMBERSHIP August 6 , 2026 https://www.totetsu.co.jp/english/ Company name : TOTETSU KOGYO CO . , LTD . Listing : Tokyo Stock Exchange Securities code : 1835 URL : Representative : Inquiries : Telephone : + 81-3-5369-7611 Katsumi Ise , President , Representative Director Tsuyoshi Fujii , General Manager , Public Relations & Investor Relations Department , Finance & Corporate Planning Group Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : None 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 Net sales Operating profit Ordinary profit Three months ended Millions of yen % Millions of yen % Millions of yen % owners of parent Millions of yen % June 30 , 2026 29,647 1.4 2,125 ( 9.1 ) 2,527 ( 4.2 ) 1,667 ( 3.3 ) June 30 , 2025 29,229 11.5 2,338 76.2 2,637 67.9 1,723 21.3 Note : Comprehensive income For the three months June 30 , 2026 : For the three months June 30 , 2025 : ¥ 1,002million [ ( 59.1 % ) ] ¥ 2,452 million [ 147.8 % ] Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30 , 2026 48.41 June 30 , 2025 50.05
Page 2
(2) Consolidated financial position Total assets Net assets Equity-to-asset ratio As of Millions of yen Millions of yen % June 30, 2026 164,280 132,212 79.7 March 31, 2026 203,845 133,975 65.1 Reference: Equity As of June 30, 2026: ¥130,871million As of March 31, 2026: ¥132,665million 2. Cash dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 — 70.00 — 80.00 150.00 Fiscal year ending March 31, 2027 — Fiscal year ending March 31, 2027 (Forecast) 76.00 — 76.00 152.00 Note: Revisions to the forecast of cash dividends most recently announced: None 3. Consolidated financial result forecasts for the fiscal year ending March 31, 2027 (April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 167,000 2.4 18,000 2.3 18,500 1.5 13,000 1.2 377.48 Note: Revisions to the forecast of financial results most recently announced: None
Page 3
* Notes (1) Significant changes in the scope of consolidation during the period: None (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 36,100,000 shares As of March 31, 2026 36,100,000 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 1,658,316 shares As of March 31, 2026 1,658,239 shares (iii) Average number of shares outstanding during the period Three months ended June 30, 2026 34,441,709 shares Three months ended June 30, 2025 34,432,975 shares (Note) The Company has introduced a “Board Benefit Trust” (BBT) performance-linked stock-based compensation system, and the number of treasury shares at the end of the period includes the Company’s shares (84,900 shares as of June 30, 2026 and 84,900 shares as of March 31, 2026) held by the Trust Account E for the BBT. In addition, the Company’s shares held by the Trust Account E are included in the treasury stock excluded from the calculation of the average number of shares outstanding during the period. (84,900 shares for the three months ended June 30, 2026 and 93,800 shares for the three months ended June 30, 2025)
Page 4
* Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit firm: None * Proper use of earnings forecasts and other special matters The earnings forecasts and other forward-looking statements herein are based on currently available information and certain assumptions deemed reasonable, and the Company does not in any way guarantee the achievement of the forecasts. Actual results may differ significantly from these forecasts due to a wide range of factors. Please refer to “Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information” on page 2 of the Appendix for assumptions on financial results forecasts and notes on the use of such forecasts.
Page 5
1 Table of Contents - Attachments 1. Overview of Operating Results ................................................................................................................. 2 (1) Overview of Operating Results for the Period under Review ............................................................... 2 (2) Overview of Financial Position for the Period under Review ............................................................... 2 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ..... 2 2. Quarterly Consolidated Financial Statements and Principal Notes ........................................................... 3 (1) Quarterly Consolidated Balance Sheets ................................................................................................ 3 (2) Quarterly Consolidated Statements of Income and Comprehensive Income ........................................ 5 (3) Notes to Quarterly Consolidated Financial Statements ......................................................................... 7 (Notes on going concern assumption) .............................................................................................. 7 (Notes in case of significant changes in shareholders’ equity) ......................................................... 7 (Notes on segment information, etc.) ............................................................................................... 8 (Notes on statements of cash flows) ................................................................................................. 9 3. Supplementary Information ..................................................................................................................... 10 Status of orders received, net sales and balance carried forward .............................................................. 10
Page 6
2 1. Overview of Operating Results (1) Overview of Operating Results for the Period under Review For the three months ended June 30, 2026, the Company posted orders received of ¥30,340 million (up ¥4,748 million year on year), while net sales amounted to ¥29,647 million (up ¥418 million year on year). This was mainly due to steady progress in various construction works carried over, and an increase in net sales of incidental businesses. In terms of profit, gross profit came to ¥4,875 million (up ¥312 million year on year), operating profit was ¥2,125 million (down ¥213 million year on year), ordinary profit came to ¥2,527 million (down ¥109 million year on year), and profit attributable to owners of parent amounted to ¥1,667 million (down ¥56 million year on year). Operating results by segment are as follows. Net sales in each segment are presented as net sales to outside customers. (Civil Engineering Business) Orders received were ¥19,647 million (up 1.9% year on year), net sales were ¥19,427 million (up 1.9% year on year), and balance carried forward was ¥74,622 million. Segment profit totaled ¥1,176 million (down 23.1% year on year). (Architectural Business) Orders received were ¥10,693 million (up 69.6% year on year), net sales were ¥7,721 million (down 4.6% year on year), and balance carried forward was ¥36,660 million. Segment profit totaled ¥595 million (up 9.4% year on year). (Other Businesses) Net sales amounted to ¥2,498 million (up 20.2% year on year), the principal source of which is manufacturing and sales income of railway-related products. Segment profit totaled ¥348 million (up 34.0% year on year). (2) Overview of Financial Position for the Period under Review Total assets as of June 30, 2026 amounted to ¥164,280 million (a decrease of ¥39,565 million from the end of the previous fiscal year). Main factors included a decrease in notes receivable, accounts receivable from completed construction contracts and other. Total liabilities amounted to ¥32,067 million (a decrease of ¥37,802 million from the end of the previous fiscal year). Main factors included a decrease in short-term borrowings. Total net assets amounted to ¥132,212 million (a decrease of ¥1,762 million from the end of the previous fiscal year). (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information At this point, the consolidated financial results forecast for the full fiscal year remains unchanged from the one announced on May 14, 2026, as a result of examining the financial results for the three months ended June 30, 2026.
Page 7
3 2. Quarterly Consolidated Financial Statements and Principal Notes (1) Quarterly Consolidated Balance Sheets (Thousands of yen) As of March 31,2026 As of June 30, 2026 Assets Current assets Cash and deposits 20,574,436 25,245,903 Notes receivable, accounts receivable from completed construction contracts and other 121,605,185 74,175,006 Costs on construction contracts in progress 4,369,278 8,649,872 Other 2,080,222 1,878,455 Allowance for doubtful accounts (6,829) (7,819) Total current assets 148,622,293 109,941,418 Non-current assets Property, plant and equipment 23,007,624 22,599,434 Intangible assets 418,087 448,389 Investments and other assets Investment securities 22,164,087 21,257,390 Other 9,677,186 10,077,313 Allowance for doubtful accounts (43,813) (43,813) Total investments and other assets 31,797,460 31,290,890 Total non-current assets 55,223,172 54,338,714 Total assets 203,845,466 164,280,133
Page 8
4 (Thousands of yen) As of March 31,2026 As of June 30, 2026 Liabilities Current liabilities Notes payable, accounts payable for construction contracts and other 26,420,466 16,870,060 Short-term borrowings 20,000,000 － Income taxes payable 3,286,955 160,819 Advances received on construction contracts in progress 1,140,148 1,039,033 Provision for warranties for completed construction 186,008 142,296 Provision for loss on construction contracts 67,843 43,320 Provision for bonuses 2,608,754 1,365,739 Asset retirement obligations 138,314 154,991 Other 8,580,238 4,297,024 Total current liabilities 62,428,730 24,073,286 Non-current liabilities Provision for repairs 1,301,779 1,517,682 Retirement benefit liability 870,974 897,169 Provision for share awards for directors (and other officers) 123,731 135,308 Provision for retirement benefits for directors (and other officers) 22,389 17,483 Asset retirement obligations 140,986 141,448 Other 4,981,845 5,285,612 Total non-current liabilities 7,441,707 7,994,703 Total liabilities 69,870,437 32,067,989 Net assets Shareholders’ equity Share capital 2,810,000 2,810,000 Capital surplus 3,166,700 3,166,700 Retained earnings 118,534,905 117,493,885 Treasury shares △3,859,211 △3,859,627 Total shareholders' equity 120,652,394 119,556,958 Accumulated other comprehensive income Valuation difference on available-for-sale securities 7,924,585 7,297,532 Remeasurements of defined benefit plans 4,088,154 4,016,751 Total accumulated other comprehensive income 12,012,740 11,314,284 Non-controlling interests 1,309,893 1,340,900 Total net assets 133,975,028 132,212,143 Total liabilities and net assets 203,845,466 164,280,133
Page 9
5 (2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income Three Months Ended June 30 (Thousands 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 27,150,036 27,149,082 Net sales for incidental businesses 2,078,997 2,498,448 Total net sales 29,229,033 29,647,531 Cost of sales Cost of sales of completed construction contracts 23,098,903 22,882,596 Cost of sales on incidental businesses 1,567,533 1,889,674 Total cost of sales 24,666,436 24,772,270 Gross profit Gross profit on completed construction contracts 4,051,133 4,266,486 Gross profit on incidental businesses 511,463 608,774 Total gross profit 4,562,596 4,875,260 Selling, general and administrative expenses 2,223,890 2,749,790 Operating profit 2,338,706 2,125,470 Non-operating income Interest income 71 39 Dividend income 309,366 387,233 Share of profit of entities accounted for using equity method － 16,903 Other 8,236 22,109 Total non-operating income 317,673 426,286 Non-operating expenses Interest expenses 9,661 24,031 Share of loss of entities accounted for using equity method 9,270 － Other 40 16 Total non-operating expenses 18,972 24,047 Ordinary profit 2,637,407 2,527,709 Extraordinary income Gain on sale of non-current assets 116 － Total extraordinary income 116 － Extraordinary losses Loss on retirement of non-current assets 748 146 Total extraordinary losses 748 146 Profit before income taxes 2,636,775 2,527,562 Income taxes - current 242,236 173,143 Income taxes - deferred 644,875 650,549 Total income taxes 887,111 823,693 Profit 1,749,664 1,703,536 Profit attributable to non-controlling interests 26,453 36,692 Profit attributable to owners of parent 1,723,211 1,667,176
Page 10
6 Quarterly Consolidated Statements of Comprehensive Income Three Months Ended June 30 (Thousands of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Profit 1,749,664 1,703,869 Other comprehensive income Valuation difference on available-for-sale securities 734,703 (630,449) Remeasurements of defined benefit plans, net of tax (32,033) (71,403) Total other comprehensive income 702,670 (701,852) Comprehensive income 2,452,334 1,002,017 Comprehensive income attributable to Comprehensive income attributable to owners of parent 2,421,144 968,719 Comprehensive income attributable to non-controlling interests 31,190 33,297
Page 11
7 (3) Notes to Quarterly Consolidated Financial Statements (Notes on going concern assumption) Not applicable. (Notes in case of significant changes in shareholders’ equity) Not applicable.
Page 12
8 (Notes on segment information, etc.) I. For the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025) Information on net sales and profit (loss) and information on disaggregation of revenue by reportable segment (Thousands of yen) Reportable segment Others (Note 1) Total Adjustment (Note 2) Amount recorded in Quarterly Consolidated Statements of Income (Note 3) Civil Engineering Business Architectural Business Total Net sales Goods or services transferred at a point in time 3,639,543 540,486 4,180,029 1,967,153 6,147,183 － 6,147,183 Goods or services transferred over time 15,416,999 7,553,007 22,970,006 － 22,970,006 － 22,970,006 Revenue from contracts with customers 19,056,543 8,093,493 27,150,036 1,967,153 29,117,190 － 29,117,190 Revenue from other sources － － － 111,843 111,843 － 111,843 Net sales to outside customers 19,056,543 8,093,493 27,150,036 2,078,997 29,229,033 － 29,229,033 Inter-segment net sales or transfers － 113,541 113,541 73,550 187,091 (187,091) － Total 19,056,543 8,207,035 27,263,578 2,152,547 29,416,125 (187,091) 29,229,033 Segment profit 1,528,949 544,622 2,073,571 260,158 2,333,730 4,975 2,338,706 (Notes) 1. The “Others” category is a business segment not included in reportable segments, and includes manufacturing and sale of railway-related products, real estate leasing business and environmental business, etc. 2. Segment profit adjustment of ¥4,975 thousand consists of inter-segment elimination of ¥2,165 thousand and adjustment of unrealized gain (loss) on non-current assets of ¥2,810 thousand. 3. Segment profit is adjusted with operating profit in the Quarterly Consolidated Statements of Income.
Page 13
9 II. For the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) Information on net sales and profit (loss) and information on disaggregation of revenue by reportable segment (Thousands of yen) Reportable segment Others (Note 1) Total Adjustment (Note 2) Amount recorded in Quarterly Consolidated Statements of Income (Note 3) Civil Engineering Business Architectural Business Total Net sales Goods or services transferred at a point in time 4,736,068 507,347 5,243,416 2,380,655 7,624,071 － 7,624,071 Goods or services transferred over time 14,691,080 7,214,585 21,905,666 － 21,905,666 － 21,905,666 Revenue from contracts with customers 19,427,149 7,721,933 27,149,082 2,380,655 29,529,738 － 29,529,738 Revenue from other sources － － － 117,793 117,793 － 117,793 Net sales to outside customers 19,427,149 7,721,933 27,149,082 2,498,448 29,647,531 － 29,647,531 Inter-segment net sales or transfers 1,850 110,738 112,588 221,498 334,087 (334,087) － Total 19,428,999 7,832,671 27,261,671 2,719,947 29,981,619 (334,087) 29,647,531 Segment profit 1,176,509 595,860 1,772,369 348,589 2,120,959 4,511 2,125,470 (Notes) 1. The “Others” category is a business segment not included in reportable segments, and includes manufacturing and sale of railway-related products, real estate leasing business and environmental business, etc. 2. Segment profit adjustment of ¥4,511 thousand consists of inter-segment elimination of ¥1,755 thousand and adjustment of unrealized gain (loss) on non-current assets of ¥2,756 thousand. 3. Segment profit is adjusted with operating profit in the Quarterly Consolidated Statements of Income. (Notes on statements of cash flows) The quarterly consolidated statements of cash flows for the three months ended June 30, 2026 have not been prepared. Depreciation (including amortization of intangible assets) for the three months ended June 30 is as follows. (Thousands of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Depreciation 654,347 788,527
Page 14
10 3. Supplementary Information Status of orders received, net sales and balance carried forward Comparison of orders received by consolidated division (Figures of less than one million yen are rounded down.) Category For the three months ended June 30, 2025 Composition ratio For the three months ended June 30, 2026 Composition ratio <Construction business> Millions of yen Millions of yen Civil Engineering 19,286 75.4% 19,647 64.8% Architectural 6,306 24.6% 10,693 35.2% Total 25,592 100.0% 30,340 100.0% Public sector 1,838 7.1% 1,472 4.9% Railway 390 1.5% Railway 75 0.3% General 1,448 5.6% General 1,396 4.6% Private sector 23,753 92.9% 28,868 95.1% Railway 22,178 86.7% Railway 25,765 84.9% General 1,574 6.2% General 3,102 10.2% Total 25,592 100.0% 30,340 100.0% Railway 22,568 88.2% Railway 25,841 85.2% General 3,023 11.8% General 4,499 14.8% Comparison of net sales by consolidated division (Figures of less than one million yen are rounded down.) Category For the three months ended June 30, 2025 Composition ratio For the three months ended June 30, 2026 Composition ratio <Construction business> Net sales of completed construction contracts Millions of yen Millions of yen Civil Engineering 19,056 70.2% 19,427 71.6% Architectural 8,093 29.8% 7,721 28.4% Total 27,150 100.0% 27,149 100.0% Public sector 2,513 9.3% 1,790 6.6% Railway 907 3.4% Railway 743 2.7% General 1,605 5.9% General 1,047 3.9% Private sector 24,636 90.7% 25,358 93.4% Railway 20,554 75.7% Railway 22,656 83.5% General 4,081 15.0% General 2,701 9.9% Total 27,150 100.0% 27,149 100.0% Railway 21,462 79.1% Railway 23,399 86.2% General 5,687 20.9% General 3,749 13.8% <Incidental businesses> Net sales 2,078 － 2,498 － Net sales total 29,229 － 29,647 －
Page 15
11 Comparison of balance carried forward by consolidated division (Figures of less than one million yen are rounded down.) Category For the three months ended June 30, 2025 Composition ratio For the three months ended June 30, 2026 Composition ratio <Construction business> Millions of yen Millions of yen Civil Engineering 83,312 72.4% 74,622 67.1% Architectural 31,736 27.6% 36,660 32.9% Total 115,049 100.0% 111,282 100.0% Public sector 9,764 8.5% 7,059 6.3% Railway 2,926 2.5% Railway 1,243 1.1% General 6,838 6.0% General 5,815 5.2% Private sector 105,284 91.5% 104,223 93.7% Railway 98,129 85.3% Railway 94,034 84.5% General 7,155 6.2% General 10,189 9.2% Total 115,049 100.0% 111,282 100.0% Railway 101,055 87.8% Railway 95,277 85.6% General 13,993 12.2% General 16,005 14.4%