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 . The Company assumes no responsibility for this translation or for direct , indirect or any other forms of damages arising from the translation . Consolidated Financial Statements for the Three Months Ended June 30 , 2026 [ Japanese GAAP ] Accounting Standards FASF MEMBERSHIP Company name : TAIHEI DENGYO KAISHA , LTD . August 6 , 2026 Stock exchange listing : Tokyo Stock Exchange Code number : 1968 URL : https://www.taihei-dengyo.co.jp/ Representative : Hiroaki Ito , Representative Director , President and Chief Executive Officer Contact : Shinya Kusaka , Director and Senior Managing Executive Officer / General Manager , General Affairs Administrative Division Phone : + 81-3-5213-7211 Scheduled date of commencing dividend payments : Preparation of supplementary explanatory materials : No Holding of financial results briefing : No ( Amounts of less than one million yen are rounded down . ) 1. Consolidated Results for the Three Months Ended June 30 , 2026 ( April 1 , 2026 - June 30 , 2026 ) ( 1 ) Consolidated Operating Results ( Cumulative ) ( % indicates changes from the previous corresponding period . ) Operating profit Million yen 3,401 116.9 Net sales Three months ended June 30 , 2026 June 30 , 2025 Million yen 36,611 29,572 % 23.8 ( 1.7 ) 1,567 Ordinary profit % Million yen 3,697 % Profit attributable to owners of parent Million yen % 123.4 108.8 ( 36.9 ) 1,655 ( 50.0 ) 1,115 ( 50.1 ) 2,330 ( Note ) Comprehensive income : Three months ended June 30 , 2026 : 3,219 million yen [ 53.2 % ] Three months ended June 30 , 2025 : 2,101 million yen [ ( 28.9 ) % ] Diluted earnings per share Basic earnings per share Three months ended Yen June 30 , 2026 36.92 17.74 Yen 17.73 June 30 , 2025 * The Company conducted a 3 - for - 1 share split of its common shares , effective October 1 , 2025. Accordingly , for the purposes of calculation , the basic earnings per share and the diluted earnings per share have been calculated assuming that the share split had been implemented at the beginning of the previous fiscal year . ( 2 ) Consolidated Financial Position Total assets Net assets Equity - to - asset ratio As of June 30 , 2026 As of March 31 , 2026 Million yen 173,810 175,365 Million yen 126,711 % 72.0 127,939 72.1 ( Reference ) Equity : As of June 30 , 2026 : 125,109 million yen As of March 31 , 2026 : 126,418 million yen
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2. Cash Dividends Annual dividends 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total Yen Yen Yen Yen Yen Year ended March 31, 2026 – – – 70.00 70.00 Year ending March 31, 2027 – Year ending March 31, 2027 (Forecast) – – 75.00 75.00 (Note) Changes from the most recent dividends forecast: None 3. Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2027 (April 1, 2026 - March 31, 2027) (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Yen Full year 160,000 12.9 17,400 17.3 18,400 13.3 12,000 0.8 190.16 (Note) Changes from the most recent results forecast: None * Notes: (1) Significant changes in the scope of consolidation during the period: Yes Newly included: 2 companies (TOEI ENGINEERING CO., LTD. and one other company) (2) Application of special accounting methods for preparing quarterly consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: None 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting estimates: None 4) Retrospective restatement: None (4) Total number of shares issued and outstanding (common shares) 1) Number of shares issued and outstanding at the end of the period (including treasury shares): June 30, 2026: 65,195,940 shares March 31, 2026: 65,195,940 shares 2) Number of treasury shares at the end of the period: June 30, 2026: 2,091,560 shares March 31, 2026: 2,091,554 shares 3) Average number of shares during the period (cumulative from the beginning of the fiscal year): June 30, 2026: 63,104,381 shares June 30, 2025: 62,895,834 shares * The Company conducted a 3-for-1 share split of its common shares, effective October 1, 2025. Accordingly, for the purposes of calculation, 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 during the period have been calculated assuming that the share split had been implemented at the beginning of the previous fiscal year. * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (voluntary)
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* Explanation of the proper use of performance forecast and other notes The earnings forecast and other forward -looking statements herein are based on the information currently available and certain assumptions deemed reasonable by the Company, and thus actual results may differ significantly from these forecasts due to a wide range of factors.
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TAIHEI DENGYO KAISHA, LTD. (1968) Financial Results for the Three Months Ended June 30, 2026 [Japanese GAAP] 1 Table of Contents 1. Overview of Operating Results, etc. ...................................................................................................... 2 (1) Overview of Operating Results for the Three Months Ended June 30, 2026 .................................... 2 (2) Overview of Financial Position for the Three Months Ended June 30, 2026 ................................... 2 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information . 3 2. Quarterly Consolidated Financial Statements and Primary Notes ........................................................ 4 (1) Quarterly Consolidated Balance Sheet .............................................................................................. 4 (2) Quarterly Consolidated Statement of Income and Comprehensive Income...................................... 6 (3) Notes to Quarterly Consolidated Financial Statements ..................................................................... 8 (Segment information, etc.) ........................................................................................................ 8 (Notes in case of significant changes in shareholders’ equity) ..................................................... 9 (Notes on going concern assumption) .......................................................................................... 9 (Notes to statement of cash flows) ............................................................................................... 9 3. Supplemental Information ................................................................................................................... 10 (1) Orders Received, Net Sales and Order Backlog by Segment .......................................................... 10
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TAIHEI DENGYO KAISHA, LTD. (1968) Financial Results for the Three Months Ended June 30, 2026 [Japanese GAAP] 2 1. Overview of Operating Results, etc. (1) Overview of Operating Results for the Three Months Ended June 30, 2026 During the three months ended June 30, 2026, the Japanese economy continued to recover moderately, with a pickup in corporate profits and capital expenditure against the backdrop of an improved employment and income environment and the effect of various government policies. However, the situation surrounding the economy still remains uncertain, given factors such as the impact of rising prices on consumer spending, on top of the situation in the Middle East and changes in financial and capital markets. Under these circumstances, for the three months ended June 30, 202 6, the TDK Group recorded orders received of 36,399 million yen (an increase of 9.5% YoY) and net sales of 36,611 million yen (an increase of 23.8% YoY) including 1,473 million yen (an increase of 4.8% YoY) for overseas works. Regarding profits, operating profit amounted to 3,401 million yen (an increase of 116.9% YoY), ordinary profit amounted to 3,697 million yen (an increase of 123.4% YoY), and profit attributable to owners of parent amounted to 2,330 million yen (an increase of 108.8% YoY). Performance results by business segment are as follows. (Construction Segment) Orders received amounted to 8,092 million yen (a decrease of 45.7% YoY , composition ratio: 22.2%). Works for nuclear power plants decreased, resulting in a decrease for the overall segment. Net sales amounted to 10,629 million yen (an increase of 16.5% YoY , composition ratio: 29.0%). Works for nuclear power plants and works for environmental preservation plants increased, resulting in an increase for the overall segment. Segment profit amounted to 681 million yen (an increase of 119.4% YoY). (Maintenance and Renovation Segment) Orders received amounted to 28,307 million yen ( an increase of 54.4% YoY , composition ratio: 77.8%). Works for nuclear power plants and works for thermal power plants for private use increased, resulting in an increase for the overall segment. Net sales amounted to 25,982 million yen (an increase of 27.1% YoY , composition ratio: 71.0%). Works for nuclear power plants increased, resulting in an increase for the overall segment. Segment profit amounted to 4,190 million yen (an increase of 60.3% YoY). (2) Overview of Financial Position for the Three Months Ended June 30, 2026 (a) Assets Current assets amounted to 117,981 million yen, down 5,203 million yen from the end of the previous fiscal year. This was due mainly to a decrease of 7,990 million yen in cash and deposits and 2,945 million yen in Notes receivable, accounts receivable from completed construction contracts, and contract assets, despite an increase of 4,470 million yen in costs on construction contracts in progress. Non-current assets amounted to 55,829 million yen, up 3,648 million yen from the end of the previous fiscal year. This was due mainly to increase s of 2,276 million yen in investment securities and 471 million yen in goodwill. (b) Liabilities Current liabilities amounted to 26,142 million yen, down 1,179 million yen from the end of the previous fiscal year. This was due mainly to a decrease of 2,865 million yen in income taxes payable, despite an increase of 1,804 million yen in notes payable, accounts payable for construction contracts. Non-current liabilities amounted to 20,956 million yen, up 851 million yen from the end of the previous fiscal year. This was due mainly to an increase of 765 million yen in deferred tax liabilities.
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TAIHEI DENGYO KAISHA, LTD. (1968) Financial Results for the Three Months Ended June 30, 2026 [Japanese GAAP] 3 (c) Net assets Net assets amounted to 126,711 million yen, down 1,227 million yen from the end of the previous fiscal year. This was due mainly to a decrease of 2,105 million yen in retained earnings, despite an increase of 745 million yen in valuation difference on available-for-sale securities. (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information There is no change to the consolidated financial results forecast for the full year from the forecast in the “Consolidated Financial Statements for the Fiscal Year Ended March 31, 2026” published on May 14, 2026. Forward-looking statements, such as performance forecasts, made in this document are based on information currently available to the Company and certain assumptions deemed reasonable, and actual results, etc. may differ significantly due to various factors.
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TAIHEI DENGYO KAISHA, LTD. (1968) Financial Results for the Three Months Ended June 30, 2026 [Japanese GAAP] 4 2. Quarterly Consolidated Financial Statements and Primary Notes (1) Quarterly Consolidated Balance Sheet (Unit: ¥1 million) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 35,423 27,432 Notes receivable, accounts receivable from completed construction contracts, and contract assets 72,611 69,665 Electronically recorded monetary claims - operating 1,471 1,434 Costs on construction contracts in progress 10,023 14,493 Other 3,758 5,052 Allowance for doubtful accounts (102) (97) Total current assets 123,185 117,981 Non-current assets Property, plant and equipment Buildings and structures 20,102 20,360 Accumulated depreciation and impairment (12,721) (13,022) Buildings and structures, net 7,380 7,337 Machinery and vehicles 13,103 13,629 Accumulated depreciation (10,791) (11,292) Machinery and vehicles, net 2,312 2,336 Tools, furniture and fixtures 2,865 2,949 Accumulated depreciation and impairment (2,622) (2,671) Tools, furniture and fixtures, net 242 278 Land 9,392 9,630 Leased assets 691 935 Accumulated depreciation (392) (444) Leased assets, net 299 491 Construction in progress 267 622 Total property, plant and equipment 19,895 20,696 Intangible assets Goodwill – 471 Other 263 293 Total intangible assets 263 764 Investments and other assets Investment securities 23,060 25,337 Long-term loans receivable 408 511 Retirement benefit asset – 0 Real estate for rent 6,703 6,702 Accumulated depreciation (763) (777) Real estate for rent, net 5,939 5,925 Deferred tax assets 37 88 Long term-bank cash 50 50 Other 2,776 2,712 Allowance for doubtful accounts (250) (258) Total investments and other assets 32,021 34,368 Total non-current assets 52,180 55,829 Total assets 175,365 173,810
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TAIHEI DENGYO KAISHA, LTD. (1968) Financial Results for the Three Months Ended June 30, 2026 [Japanese GAAP] 5 (Unit: ¥1 million) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes payable, accounts payable for construction contracts 10,907 12,711 Electronically recorded obligations - operating – 103 Current portion of long-term borrowings 1,067 1,067 Lease liabilities 153 197 Income taxes payable 3,782 917 Contract liabilities 6,814 7,473 Provision for bonuses 1,050 440 Provision for bonuses for directors (and other officers) 123 22 Provision for warranties for completed construction 76 109 Provision for loss on construction contracts 1,055 1,173 Other 2,290 1,925 Total current liabilities 27,321 26,142 Non-current liabilities Bonds payable 5,000 5,000 Long-term borrowings 8,858 8,591 Lease liabilities 166 311 Deferred tax liabilities 2,098 2,863 Retirement benefit liability 3,517 3,590 Provision for share awards for directors (and other officers) 232 232 Other 231 365 Total non-current liabilities 20,104 20,956 Total liabilities 47,426 47,098 Net assets Shareholders' equity Share capital 7,070 7,070 Capital surplus 9,602 9,602 Retained earnings 100,633 98,528 Treasury shares (1,196) (1,197) Total shareholders' equity 116,109 114,004 Accumulated other comprehensive income Valuation difference on available-for-sale securities 10,389 11,135 Foreign currency translation adjustment (226) (193) Remeasurements of defined benefit plans 144 163 Total accumulated other comprehensive income 10,308 11,105 Non-controlling interests 1,520 1,602 Total net assets 127,939 126,711 Total liabilities and net assets 175,365 173,810
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TAIHEI DENGYO KAISHA, LTD. (1968) Financial Results for the Three Months Ended June 30, 2026 [Japanese GAAP] 6 (2) Quarterly Consolidated Statement of Income and Comprehensive Income Three Months Ended June 30, 2025 and 2026 (Unit: ¥1 million) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Net sales 29,572 36,611 Cost of sales 25,141 30,216 Gross profit 4,430 6,395 Selling, general and administrative expenses 2,862 2,994 Operating profit 1,567 3,401 Non-operating income Interest income 2 3 Dividend income 248 278 Share of profit of entities accounted for using equity method 47 90 Rental income from non-current assets 89 78 Foreign exchange gains – 34 Other 46 29 Total non-operating income 434 514 Non-operating expenses Interest expenses 23 51 Foreign exchange losses 228 – Rental expenses on non-current assets 35 56 Burial Cultural Asset Investigation Expense NOE – 48 Other 60 62 Total non-operating expenses 347 218 Ordinary profit 1,655 3,697 Extraordinary income Gain on recovery of money transfer scam at overseas branch 3 – Gain on sale of non-current assets – 6 Gain on sale of golf club membership 0 4 Other 0 – Total extraordinary income 4 10 Extraordinary losses Loss on retirement of non-current assets 0 0 Loss on valuation of golf club membership – 1 Loss on sale of golf club membership – 0 Total extraordinary losses 0 2 Profit before income taxes 1,660 3,706
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TAIHEI DENGYO KAISHA, LTD. (1968) Financial Results for the Three Months Ended June 30, 2026 [Japanese GAAP] 7 (Unit: ¥1 million) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Income taxes - current 135 916 Income taxes - deferred 459 375 Total income taxes 594 1,291 Profit 1,066 2,414 Profit attributable to Profit attributable to owners of parent 1,115 2,330 Profit (loss) attributable to non-controlling interests (49) 84 Other comprehensive income Valuation difference on available-for-sale securities 1,118 741 Foreign currency translation adjustment (103) 42 Remeasurements of defined benefit plans, net of tax 19 19 Share of other comprehensive income of entities accounted for using equity method 0 2 Total other comprehensive income 1,035 805 Comprehensive income 2,101 3,219 Comprehensive income attributable to Comprehensive income attributable to owners of parent 2,176 3,127 Comprehensive income attributable to non- controlling interests (75) 92
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TAIHEI DENGYO KAISHA, LTD. (1968) Financial Results for the Three Months Ended June 30, 2026 [Japanese GAAP] 8 (3) Notes to Quarterly Consolidated Financial Statements (Segment information, etc.) [Segment information] I Three months from April 1, 2025 to June 30, 2025 1. Information on net sales and profit by reportable segment and information on the breakdown of income (Unit: ¥1 million) Reportable segment Total Construction Segment Maintenance and Renovation Segment Net sales Goods transferred at a point in time 2,216 11,579 13,796 Goods transferred over time 6,910 8,866 15,776 Revenue from contracts with customers 9,126 20,445 29,572 Net sales to outside customers 9,126 20,445 29,572 Segment profit 310 2,613 2,924 2. Differences between the total amount of profits for reportable segments and the amount recorded in the quarterly consolidated statement of income and comprehensive income, and main details of such differences (matters relating to reconciliation) (Unit: ¥1 million) Profits Amounts Total amount for reportable segments 2,924 Corporate expenses (Note) (1,356) Operating profit in quarterly consolidated statement of income and comprehensive income 1,567 (Note) Corporate expenses are general and administrative expenses and common expenses which do not belong to any reportable segments.
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TAIHEI DENGYO KAISHA, LTD. (1968) Financial Results for the Three Months Ended June 30, 2026 [Japanese GAAP] 9 II Three months from April 1, 2026 to June 30, 2026 1. Information on net sales and profit by reportable segment and information on the breakdown of income (Unit: ¥1 million) Reportable segment Total Construction Segment Maintenance and Renovation Segment Net sales Goods transferred at a point in time 1,652 12,306 13,958 Goods transferred over time 8,976 13,676 22,653 Revenue from contracts with customers 10,629 25,982 36,611 Net sales to outside customers 10,629 25,982 36,611 Segment profit 681 4,190 4,871 2. Differences between the total amount of profits for reportable segments and the amount recorded in the quarterly consolidated statement of income and comprehensive income, and main details of such differences (matters relating to reconciliation) (Unit: ¥1 million) Profits Amounts Total amount for reportable segments 4,871 Corporate expenses (Note) (1,470) Operating profit in quarterly consolidated statement of income and comprehensive income 3,401 (Note) Corporate expenses are general and administrative expenses and common expenses which do not belong to any reportable segments. (Notes in case of significant changes in shareholders’ equity) Not applicable. (Notes on going concern assumption) Not applicable. (Notes to statement of cash flows) Quarterly consolidated statement of cash flows has not been prepared for the three months ended June 30, 2026. Depreciation and amortization (including amortization related to intangible assets) for the three months ended June 30 are as follows. Three months from April 1, 2025 to June 30, 2025 Three months from April 1, 2026 to June 30, 2026 Depreciation 376 million yen 349 million yen
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TAIHEI DENGYO KAISHA, LTD. (1968) Financial Results for the Three Months Ended June 30, 2026 [Japanese GAAP] 10 3. Supplemental Information (1) Orders Received, Net Sales and Order Backlog by Segment Three months from April 1, 2025 to June 30, 2025 Three months from April 1, 2026 to June 30, 2026 Increase (decrease) Segment Amount (¥ million) Composition ratio (%) Amount (¥ million) Composition ratio (%) Amount (¥ million) Orders received Construction Segment 14,894 44.8 8,092 22.2 (6,802) Maintenance and Renovation Segment 18,337 55.2 28,307 77.8 9,969 Total 33,232 100.0 36,399 100.0 3,166 Net sales Construction Segment 9,126 30.9 10,629 29.0 1,502 Maintenance and Renovation Segment 20,445 69.1 25,982 71.0 5,536 Total 29,572 100.0 36,611 100.0 7,039 Order backlog Construction Segment 71,515 55.3 108,544 60.0 37,029 Maintenance and Renovation Segment 57,922 44.7 72,356 40.0 14,433 Total 129,438 100.0 180,901 100.0 51,462 (Notes) 1. Construction Segment includes businesses such as installation and reconstruction works, etc., for thermal power plants, nuclear power plants, iron and steel-related plants, environmental preservation plants and chemical plants, etc., electric and instrumentation work, and insulation and painting works incidental to these facilities, as well as demolition and decommissioning, etc., of various plants and facilities. 2. Maintenance and Renovation Segment includes businesses such as periodic inspection, daily maintenance, renovation, etc., for the various plants and facilities mentioned above as well as operation of the power plants.