Interim report
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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 Six Months Ended June 30 , 2026 ( Under Japanese GAAP ) August 6 , 2026 FASF Company name : FUKUDA CORPORATION Listing : Tokyo Stock Exchange Securities code : 1899 URL : https://www.fkd.co.jp/ Representative : Masanori Araaki Inquiries : Toshio Omi Telephone : + 81-25-266-9111 Scheduled date to file semi - annual securities report : August 6 , 2026 Scheduled date to commence dividend payments : - Preparation of supplementary material on financial results : Yes Holding of financial results briefing : None Representative Director and President Director and General Manager of Administration Department 1. Consolidated financial results for the six months ended June 30 , 2026 ( from January 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Yen amounts are rounded down to millions , unless otherwise noted . ) ( Percentages indicate year - on - year changes . ) Net sales Operating profit Ordinary profit Six months ended June 30 , 2026 Millions of yen 88,862 % Millions of yen % June 30 , 2025 Note : Comprehensive income For the six months ended June 30 , 2026 : For the six months ended June 30 , 2025 : Basic earnings per share 77,503 14.7 2.4 5,819 61.8 Millions of yen 6,074 3,596 1.9 3,802 % 59.8 2.5 Profit attributable to owners of parent Millions of yen % 4,380 71.4 2.555 3.9 ¥ ¥ 4,992 million [ 2,704 million [ 84.6 % ] ( 5.2 ) % ] Diluted earnings per share Six months ended June 30 , 2026 June 30 , 2025 Yen 264.84 154.34 Yen Note : The Company conducted a two - for - one stock split of its common shares , effective July 1 , 2026. Earnings per share for the interim period have been calculated assuming that the stock split had occurred at the beginning of the previous fiscal year . ( 2 ) Consolidated financial position As of June 30 , 2026 December 31 , 2025 Reference : Equity As of June 30 , 2026 : Total assets Net assets Equity - to - asset ratio Millions of yen 155,974 147,476 Millions of yen 92,969 90,166 % 59.4 60.9 ¥ 92,620 million ¥ 89,805 million As of December 31 , 2025 : 2. Cash dividends Fiscal year ended December 31 , 2025 Fiscal year ending Annual dividends per share First quarter - end Second quarter - end Third quarter - end Fiscal year - end Total Yen Yen Yen Yen Yen 0.00 0.00 December 31 , 2026 Fiscal year ending December 31 , 2026 ( Forecast ) Note : Revisions to the forecast of cash dividends most recently announced : Yes 260.00 260.00 140.00 140.00
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Note: The Company conducted a two-for-one stock split of its common shares, effective July 1, 2026. The forecast dividend per share for the fiscal year ending December 31, 2026 has been presented on a post-stock-split basis. On a pre-stock-split basis, the forecast year-end dividend per share for the fiscal year ending December 31, 2026 would be ¥280.00. 33333..... CCCCCooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd fffffiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll rrrrreeeeesssssuuuuulllllttttt fffffooooorrrrreeeeecccccaaaaassssstttttsssss fffffooooorrrrr ttttthhhhheeeee fffffiiiiissssscccccaaaaalllll yyyyyeeeeeaaaaarrrrr eeeeennnnndddddiiiiinnnnnggggg DDDDDeeeeeccccceeeeemmmmmbbbbbeeeeerrrrr 3333311111,,,,, 22222000002222266666 (((((fffffrrrrrooooommmmm JJJJJaaaaannnnnuuuuuaaaaarrrrryyyyy 11111,,,,, 22222000002222266666 tttttooooo DDDDDeeeeeccccceeeeemmmmmbbbbbeeeeerrrrr 3333311111,,,,, 22222000002222266666))))) (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 190,500 13.4 9,300 19.7 9,600 18.1 6,400 15.4 390.24 Note: Revisions to the financial result forecast most recently announced: Yes Note: The Company conducted a two-for-one stock split of its common shares, effective July 1, 2026. Net income per share in the consolidated earnings forecast for the fiscal year ending December 31, 2026 reflects the effect of the stock split. Without taking the stock split into account, forecast net income per share for the fiscal year ending December 31, 2026 would be ¥780.48. ***** NNNNNooooottttteeeeesssss (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 semi-annual 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 17,976,222 shares As of December 31, 2025 17,976,222 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 1,576,162 shares As of December 31, 2025 1,414,714 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Six months ended June 30, 2026 16,539,734 shares Six months ended June 30, 2025 16,557,970 shares Notes: 1. The Company conducted a two-for-one stock split of its common shares, effective July 1, 2026. The number of shares issued and outstanding at the end of the period, the number of treasury shares at the end of the period, and the average number of shares outstanding during the period have been calculated assuming that the stock split had occurred at the beginning of the previous fiscal year. 2. The Company has adopted the Employee Stock Ownership Plan (J-ESOP) and the Board Benefit Trust (BBT). Treasury shares at the end of the period include shares of the Company held by Custody Bank of Japan, Ltd. (Trust Account E) (367,600 shares as of the interim period of the fiscal year ending December 31, 2026, and 206,600 shares as of the fiscal year ended December 31, 2025). In addition, shares of the Company held by Custody Bank of Japan, Ltd. (Trust Account E) are included in treasury shares deducted in calculating the average number of treasury shares during the period (228,228 shares for the interim period of the fiscal year ending December 31, 2026, and 186,570 shares for the interim period of the fiscal year ended December 31, 2025).
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* This Quarterly (Interim) Financial Results Report is not subject to review by a certified public accountant or an audit firm. * Explanation regarding the appropriate use of earnings forecasts and other special notes Forward-looking statements contained in this document, including earnings forecasts, are based on information currently available to the Company and certain assumptions that the Company considers reasonable. Actual results may differ materially from those expressed or implied by these statements due to various factors. For the assumptions underlying the earnings forecasts and notes on their use, please refer to “1. Qualitative Information on Interim Financial Results for the Period under Review, (3) Explanation of Forward-looking Information Including Consolidated Earnings Forecasts” on page 2 of the accompanying materials. Reference: Non-consolidated earnings forecast for the fiscal year ending December 31, 2026 (January 1, 2026 ~ December 31, 2026) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Net profit Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 116,478 21.6 5,741 72.4 6,860 65.4 4,744 47.7 289.27 Note: The previously announced forecast figures disclosed on February 13, 2026 have been revised. No earnings forecast has been prepared for the cumulative third-quarter period. The Company conducted a two-for-one stock split of its common shares, effective July 1, 2026. Net income per share in the non-consolidated earnings forecast for the fiscal year ending December 31, 2026 reflects the effect of the stock split. Without taking the stock split into account, forecast net income per share for the fiscal year ending December 31, 2026 would be ¥578.53.
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Semi-annual Consolidated Financial Statements and Primary Notes Semi-annual Consolidated Balance Sheet (Millions of yen) As of December 31, 2025 As of June 30, 2026 Assets Current assets Cash and deposits 30,822 42,557 Notes receivable, accounts receivable from completed construction contracts and other 63,573 59,511 Real estate for sale 1,942 2,058 Costs on construction contracts in progress 1,861 2,447 Costs on real estate business 3,944 3,987 Other inventories 415 553 Accounts receivable - other 3,749 3,020 Other 1,352 1,098 Allowance for doubtful accounts (33) (14) Total current assets 107,630 115,221 Non-current assets Property, plant and equipment Buildings and structures 24,498 24,840 Machinery, vehicles, tools, furniture and fixtures 14,412 14,512 Land 16,486 16,463 Other 1,307 1,331 Accumulated depreciation (29,291) (29,807) Total property, plant and equipment 27,413 27,341 Intangible assets Other 382 358 Total intangible assets 382 358 Investments and other assets Investment securities 7,571 8,620 Long-term loans receivable 151 152 Retirement benefit asset 3,051 3,073 Deferred tax assets 638 552 Other 926 944 Allowance for doubtful accounts (289) (289) Total investments and other assets 12,049 13,053 Total non-current assets 39,845 40,753 Total assets 147,476 155,974
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(Millions of yen) As of December 31, 2025 As of June 30, 2026 Liabilities Current liabilities Notes payable, accounts payable for construction contracts and other 29,466 33,383 Short-term borrowings 309 257 Income taxes payable 1,465 2,325 Advances received on uncompleted construction contracts and others 9,844 13,797 Provision for loss on litigation 248 - Provisions 221 1,163 Other 7,985 4,427 Total current liabilities 49,540 55,356 Non-current liabilities Long-term borrowings 705 594 Deferred tax liabilities 883 888 Deferred tax liabilities for land revaluation 801 801 Provisions 625 650 Retirement benefit liability 2,207 2,120 Other 2,546 2,592 Total non-current liabilities 7,769 7,648 Total liabilities 57,310 63,004 Net assets Shareholders' equity Share capital 5,158 5,158 Capital surplus 6,066 6,066 Retained earnings 78,965 81,166 Treasury shares (3,518) (3,509) Total shareholders' equity 86,672 88,881 Accumulated other comprehensive income Valuation difference on available-for-sale securities 2,597 3,170 Revaluation reserve for land 18 18 Remeasurements of defined benefit plans 517 549 Total accumulated other comprehensive income 3,133 3,738 Non-controlling interests 360 349 Total net assets 90,166 92,969 Total liabilities and net assets 147,476 155,974
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Semi-annual Consolidated Statements of Income and Comprehensive Income Semi-annual Consolidated Statement of Income (Millions of yen) For the six months ended June 30, 2025 For the six months ended June 30, 2026 Net sales Net sales of completed construction contracts 70,471 80,337 Sales in real estate business 1,005 1,391 Sales in other businesses 6,026 7,134 Total net sales 77,503 88,862 Cost of sales Cost of sales of completed construction contracts 63,481 70,830 Cost of sales in real estate business 677 995 Cost of sales in other businesses 4,792 6,038 Total cost of sales 68,952 77,864 Gross profit Gross profit on completed construction contracts 6,989 9,506 Gross profit - real estate business 328 395 Gross profit - other business 1,233 1,095 Total gross profit 8,551 10,998 Selling, general and administrative expenses 4,955 5,178 Operating profit 3,596 5,819 Non-operating income Interest income 13 20 Dividend income 151 176 Reversal of allowance for doubtful accounts 0 - Share of profit of entities accounted for using equity method 12 21 Other 66 84 Total non-operating income 244 302 Non-operating expenses Interest expenses 10 17 Commission for syndicated loans 12 6 Prepayment guarantee fee 12 18 Other 3 5 Total non-operating expenses 38 47 Ordinary profit 3,802 6,074
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(Millions of yen) For the six months ended June 30, 2025 For the six months ended June 30, 2026 Extraordinary income Gain on sale of non-current assets 2 21 Gain on sale of investment securities 10 - Reversal of provision for loss on litigation - 248 Reversal of provision for loss on liquidation of subsidiaries and associates 28 - Gain on liquidation of subsidiaries and associates 59 - Other - 0 Total extraordinary income 100 269 Extraordinary losses Loss on retirement of non-current assets 25 1 Loss on valuation of investment securities 20 0 Total extraordinary losses 46 1 Profit before income taxes 3,856 6,343 Income taxes - current 1,323 2,145 Income taxes - deferred (65) (188) Total income taxes 1,258 1,956 Profit 2,598 4,386 Profit attributable to non-controlling interests 42 6 Profit attributable to owners of parent 2,555 4,380
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Semi-annual Consolidated Statement of Comprehensive Income (Millions of yen) For the six months ended June 30, 2025 For the six months ended June 30, 2026 Profit 2,598 4,386 Other comprehensive income Valuation difference on available-for-sale securities 99 565 Revaluation reserve for land (11) - Remeasurements of defined benefit plans, net of tax 19 32 Share of other comprehensive income of entities accounted for using equity method (0) 7 Total other comprehensive income 106 605 Comprehensive income 2,704 4,992 Comprehensive income attributable to Comprehensive income attributable to owners of parent 2,661 4,985 Comprehensive income attributable to non-controlling interests 43 6
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Semi-annual Consolidated Statement of Cash Flows (Millions of yen) For the six months ended June 30, 2025 For the six months ended June 30, 2026 Cash flows from operating activities Profit before income taxes 3,856 6,343 Depreciation 659 700 Increase (decrease) in allowance for doubtful accounts (18) (18) Increase (decrease) in provision for bonuses 647 919 Increase (decrease) in provision for share awards 11 28 Increase (decrease) in provision for share awards for directors (and other officers) - (8) Increase (decrease) in retirement benefit liability (43) (86) Decrease (increase) in retirement benefit asset (39) (21) Increase (decrease) in provision for loss on construction contracts (37) (15) Increase (decrease) in provision for retirement benefits for directors (and other officers) (4) 5 Increase (decrease) in other provisions (67) 37 Interest and dividend income (164) (196) Interest expenses 10 17 Loss (gain) on valuation of short-term and long-term investment securities 20 0 Loss (gain) on sale of short-term and long-term investment securities (10) - Loss (gain) on liquidation of subsidiaries and associates (59) - Loss (gain) on sale of non-current assets (2) (21) Loss on retirement of property, plant and equipment 25 1 Share of loss (profit) of entities accounted for using equity method (12) (21) Decrease (increase) in trade receivables 4,925 4,061 Decrease (increase) in inventories (384) (766) Decrease (increase) in other assets (241) 835 Increase (decrease) in trade payables 2,006 3,925 Increase (decrease) in advances received on construction contracts in progress 579 3,414 Increase (decrease) in other liabilities (3,285) (3,132) Other, net 36 64 Subtotal 8,408 16,066 Interest and dividends received 166 199 Interest paid (10) (17) Income taxes paid (1,556) (1,297) Net cash provided by (used in) operating activities 7,008 14,950
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(Millions of yen) For the six months ended June 30, 2025 For the six months ended June 30, 2026 Cash flows from investing activities Payments into time deposits (3) - Proceeds from withdrawal of time deposits 3 - Purchase of property, plant and equipment (488) (740) Proceeds from sale of property, plant and equipment 6 79 Purchase of intangible assets (32) (23) Purchase of investment securities (105) (207) Proceeds from sale of investment securities 12 0 Net decrease (increase) in short-term loans receivable 0 150 Long-term loan advances - (1) Proceeds from collection of long-term loans receivable 2 0 Proceeds from the liquidation of subsidiaries and associates 59 - Other payments (15) (61) Other proceeds 11 10 Net cash provided by (used in) investing activities (549) (793) Cash flows from financing activities Net increase (decrease) in short-term borrowings (400) (20) Repayments of long-term borrowings (141) (143) Purchase of shares of subsidiaries not resulting in change in scope of consolidation (547) - Proceeds from sale of treasury shares 14 10 Purchase of treasury shares (1) (1) Dividends paid (1,670) (2,174) Dividends paid to non-controlling interests (29) (17) Repayments of finance lease liabilities (76) (75) Net cash provided by (used in) financing activities (2,853) (2,422) Net increase (decrease) in cash and cash equivalents 3,605 11,734 Cash and cash equivalents at beginning of period 31,946 30,819 Cash and cash equivalents at end of period 35,551 42,554