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 Three Months Ended June 30 , 2026 [ J - GAAP ] August 6 , 2026 Accounting Standards F FASF MEMBERSHIP Company name : MIYAJI ENGINEERING GROUP , INC . Tokyo Stock Exchange https://www.miyaji-eng.com/ Listing : Securities code : 3431 URL : Representative : Inquiries : E - mail : Masahiro Ikeura , President and Representative Director Akinobu Endo , Senior Operating Officer and General Manager , Planning and Management Department meg.IR@miyaji-eng.co.jp 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 owners of parent Three months ended Millions of yen % June 30 , 2026 June 30 , 2025 11,427 14,734 ( 22.4 ) Millions of yen 341 % ( 76.3 ) ( 6.1 ) 1,437 19.0 Millions of yen 465 1,535 % Millions of yen % ( 69.7 ) 431 ( 53.2 ) 17.5 923 28.4 Note : Comprehensive income For the three months ended June 30 , 2026 : For the three months ended June 30 , 2025 : ¥ 394 million ¥ 1,069 million [ ( 63.1 ) % ] [ 22.9 % ] Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30 , 2026 June 30 , 2025 16.28 34.81 ( 2 ) Consolidated financial position Total assets Net assets Equity - to - asset ratio As of Millions of yen Millions of yen % June 30 , 2026 March 31 , 2026 77,862 82,021 48,875 49,988 53.6 52.2 Reference : Equity As of June 30 , 2026 : As of March 31 , 2026 : ¥ 41,742 million ¥ 42,841 million
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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 - 42.50 - 55.00 97.50 Fiscal year ending March 31, 2027 - Fiscal year ending March 31, 2027 (Forecast) 27.00 - 48.00 75.00 Note: Revisions to the cash dividends fo recasts most recently announced: None 3. Consolidated financial result forecasts for the fiscal year ending March 31, 2027 (from 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 % M illions of yen % Millions of yen % Yen First half 25,000 (11.7) 550 (80. 7) 630 (79.0) 710 (60.6) 26.91 Full year 55,000 (2.9) 2,300 (49.2) 2,400 (50.3) 2,000 (38.7) 76.18 Note: Revisions to the financial result forecasts most recently announced: None
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* 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 prep aration of quarterly consolidated financial statements: Yes Note: For details, please refer to “2. Quarterly Consolidated Fi nancial Statements and Principal Notes, (3) Notes to Quarterly Consolidated Financial Statements, (Notes on accounting treatment specific to the preparation of quarterly consolidated financial statements)” on page 8 of the Attachment. (3) Changes in accounting policies, change s 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 other than (i) above: 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 27,677,816 shares As of March 31, 2026 27,677,816 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 1,158,824 shares As of March 31, 2026 1,158,824 shares (iii) Average number of shares outstanding during th e period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 26,518,992 shares Three months ended June 30, 2025 26,519,016 shares * Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit corporation: Yes (voluntary) * Proper use of earnings forecasts and other special matters (Cautionary note concerning forward-looking statements) The earnings forecasts and other forward-looking statements presented in this document are based on information currently available to the Company and certain assumptions deemed to be reasonable and do not represent a commitment from the Company that they will be achieved. Actual results may differ significantly due to various factors. For preconditions for the earnings forecasts and notes on the use of the earnings forecasts, please refer to “1. Overview of Operating Results, etc., (3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Information” on page 3 of the Attachment.
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1 Table of Contents - Attachments 1. Overview of Operating Results, etc. ....................................................................................... ........................ 2 (1) Overview of Operating Results for the Quarter under Review .................................................................. 2 (2) Overview of Financial Position for the Quarter under Review .............................................................. .... 2 (3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Information ...................... 3 2. Quarterly Consolidated Financial Statements and Principal Notes ........................................................... ..... 4 (1) Quarterly Consolidated Balance Sheets .................................................................................... ................. 4 (2) Quarterly Consolidated Statements of Income and Comprehensive Income ............................................. 6 Quarterly Consolidated Statements of Income .................................................................................. ......... 6 Quarterly Consolidated Statements of Comprehensive Income ................................................................. 7 (3) Notes to Quarterly Consolidated Financial Statements ..................................................................... ......... 8 (Notes on accounting treatment specific to the preparation of quarterly consolidated financial statements) .................................................................................................................. ..................... 8 (Notes on segment information, etc.) ......................................................................................... ........... 8 (Notes in the case of significant changes in shareholders’ equity) ........................................................ 9 (Notes on going concern assumption) .......................................................................................... ......... 9 (Notes on quarterly consolidated balance sheets) .............................................................................. .... 9 (Notes on quarterly consolidated statements of cash flows) ............................................................... 10 (Notes on significant subsequent events) ..................................................................................... ....... 10 3. Supplementary Information ................................................................................................. ......................... 11 Status of Production, Orders Received, and Sales (Consolidated) .............................................................. . 11
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2 1. Overview of Operating Results, etc. (1) Overview of Operating Results for the Quarter under Review During the three months ended June 30, 2026, although the Japanese economy experienced a gradual recovery, close attention must be paid to impacts from the situation in the Middle East. Looking ahead, while the improvement in the employment and income environment and the results of various policies are expected to support a gradual recovery, close attention must continue to be paid to impacts from the situation in the Middle East, as well as to the impact of fluctuations in financial and capital markets. In the business environment, although domestic public investment (budget base) remained firm, order volume based on operational volume continued to decline due to impacts from soaring per-unit construction costs. In the Group’s mainstay bridge business segment, the current fiscal year’s order volume based on steel weight, which for the past few years has trended above 100,000 tons, is expected to fall further below the previous fiscal year’s record low of 96,000 tons. The status of orders for the three months ended June 30, 2026 started off even lower than the same period of the previous fiscal year, amounting to ¥24.0 billion in new construction-related projects and ¥25.0 billion in large-scale renovation and maintenance-related projects (both based on our aggregate calculation). The pace of orders is expected to significantly accelerate in the future. In this environment, orders receive d amounted to ¥18,904 million (up 74 .6% year on year), mainly due to orders received for large projects related to large-scale renovation and maintenance at MM BRIDGE, CO., LTD. Mainly due to a decline in net sales resulting from later-than-expected construction schedules of large projects, together with an increase in smaller, low- margin projects, net sales were ¥11,427 million (down 22.4% year on year), operating profit was ¥341 millio n (down 76.3% year on year), ordinary profit was ¥465 million (down 69.7% year on year), and profit attributab le to owners of parent was ¥431 million (down 53.2% year on year), all of which were significantly lower than in the same period of the previous fiscal year. Results by segment are as follows: (MIYAJI ENGINEERING) Orders received amounted to ¥7,497 million (down 17 .6% year on year), mainly due to the absence of large private-sector projects that existed during the same period of the previous fiscal year. Net sales were ¥7,212 million (down 29.7% year on year), and operating profit was ¥246 million (down 76.5% year on year), mainly due to a decline in net sales resulting from later-than-expected construction schedules of large projects, together with an increase in smaller, low-margin projects. (MM BRIDGE) Orders received amounted to ¥11,400 million (up 560.7% year on year), mainly due to orders received for large projects related to large-scale renovation and maintenance. Net sales were ¥4,187 million (down 5.4% year on year), and operating profit was ¥130 million (down 66.4% year on year), mainly due to delays in construction schedules for large projects continuing from the previous fiscal year, together with an increase in smaller, low-margin projects. (2) Overview of Financial Position for the Quarter under Review Total assets decreased by ¥4,158 million from the end of th e previous fiscal year to ¥77,862 million. This was mainly due to a decrease of ¥9,312 million in notes receivable, accounts receivable from completed construction contracts and other, which was partially offset by an increase of ¥4,714 million in cash and deposits. Total liabilities decreased by ¥3,044 million from the end of the previous fiscal year to ¥28,987 million. This was mainly due to decreases of ¥1,065 million in notes payable, accounts payable for construction contracts and other, ¥546 million in income taxes payable, and ¥1,584 million in accounts payable - other included in other under current liabilities. Total net assets decreased by ¥1,113 million from the end of the previous fiscal year to ¥48,875 million. This was mainly due to a decrease of ¥1,026 million in retained earnings.
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3 (3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Information With regard to the outlook for the Japanese economy, the improvement in the employment and income environment and the results of various policies are expected to support a gradual recovery. In line with the principle of “responsible and proactive public finances,” to restore the strength of the Japanese economy, it is expected that the Comprehensive Economic Measures approved by the Cabinet last November, and the FY2025 supplementary budget and the FY2026 budget, which will underpin these economic measures, will be quickly and steadily implemented, leading to the construction of a “Strong Japanese Economy.” Against this backdrop, in the Group’s mainstay bridge business segment, the challenging business environment is expected to continue through the first half of the next Medium-Term Business Plan period (FY2027 to FY2031). As such, the expected orders for the current fiscal year are ¥186.0 billion for new construction-related projects and ¥204.0 billion for large-scale renovation and maintenance-related projects (both based on our estimate), with both anticipated to fa ll short of results in the previous fiscal year. Competition for orders for new construction-related projects continues to be severe. However, order volume for large-scale renovation and main tenance-related projects, including large-scale expressway renovation projects with project size of approximately ¥7 trillion, are expected to recover in the second half of the next Medium-Term Business Plan thanks to the increasing number of locations requiring renovation and maintenance work, despite the continuing trend toward reducing the scale of new orders and postponing them due to budgetary and other factors. In addition, highly difficult and large-scale proj ects such as the western extension of the Wangan (Osaka Bay) Route and th e Meishin Wangan Route Access Bridge are steadily moving forward. We have also received urban planning approval for the Shimonoseki-Kitakyushu Road, including No. 2 Kanmon Bridge, and work is progressing on the formulation of a basic policy. Furthermore, the market environment is expected to improve, including new construction-related projects, as the Comprehensive Economic Measures to Build a “Strong Japanese Economy” are carried out. As such, we believe that this is a business environment in which the Group can make major advances in the medium term. Moreover, in private-sector projects such as railroad-re lated projects, buildings with large interior spaces and special buildings, and coastal structures projects, nume rous large-scale projects continue to be planned, including terminal stations redevelopment projects in th e Tokyo area, which are highly difficult to construct, continuous grade separation projects, and medium- a nd large-scale redevelopment projects in urban areas. Therefore, we believe that there is still much room for the Group to demonstrate its safe, reliable, and advanced technical capabilities. In the current fiscal year, the final year of the cu rrent Medium-Term Business Plan, we will continue to steadily implement various measures, further strengthen our business management control system as a Group, and strive to firmly establish a profit structure that is stable even amid a rapidly changing business environment. We will also seek to achieve sustainable growth and business development as one team with MIYAJI ENGINEERING CO., LTD. and MM BRIDGE CO., LTD., wh ich form the core of the Group. We will optimize our management by appropriately allocating management resources to new construction-related, large-scale renovation and maintenance-related, and private-sector projects (including railroad-related, buildings with large interior spaces and special buildings, and coastal structures projects), aligning with shifts and trends in the domestic steel bridge market. At the same time, we will strive to improve productivity through technology development and digital transformation (DX), and secure and train human resources, promote the career advancement of women, and carry out work style reforms. We plan to announce specific details of the next Medium-Term Business Plan (FY2027 to FY2031), which will be aimed at ensuring the sustainable growth of the Group, during the current fiscal year. In addition, the consolidated financial result forecasts for the first half and the full year of the fiscal year ending March 31, 2027, remain unchanged from the figures announced on May 13, 2026.
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4 2. Quarterly Consolidated Financial Statements and Principal Notes (1) Quarterly Consolidated Balance Sheets (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 12,370 17,084 Notes receivable, accounts receivable from completed construction contracts and other 40,323 31,011 Costs on construction contracts in progress 259 167 Other 842 1,221 Total current assets 53,795 49,484 Non-current assets Property, plant and equipment Land 8,114 8,114 Other, net 9,773 10,078 Total property, plant and equipment 17,887 18,192 Intangible assets 436 415 Investments and other assets Investment securities 8,812 8,680 Other 1,107 1,109 Allowance for doubtful accounts (18) (18) Total investments and other assets 9,900 9,770 Total non-current assets 28,225 28,378 Total assets 82,021 77,862 Liabilities Current liabilities Notes payable, accounts payable for construction contracts and other 6,265 5,200 Current portion of long-term borrowings 300 300 Income taxes payable 843 297 Advances received on construction contracts in progress 13,076 13,321 Provision for warranties for completed construction 627 625 Provision for loss on construction contracts 2,385 2,179 Provision for bonuses 939 407 Other 2,872 2,028 Total current liabilities 27,311 24,360 Non-current liabilities Deferred tax liabilities for land revaluation 1,668 1,668 Retirement benefit liability 1,149 1,148 Provisions 218 160 Other 1,684 1,649 Total non-current liabilities 4,721 4,626 Total liabilities 32,032 28,987
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5 (Millions of yen) As of March 31, 2026 As of June 30, 2026 Net assets Shareholders’ equity Share capital 3,000 3,000 Capital surplus 3,746 3,746 Retained earnings 29,261 28,234 Treasury shares (1,728) (1,728) Total shareholders’ equity 34,279 33,252 Accumulated other comprehensive income Valuation difference on available-for-sale securities 5,038 4,979 Revaluation reserve for land 3,153 3,153 Remeasurements of defined benefit plans 370 357 Total accumulated other comprehensive income 8,562 8,490 Non-controlling interests 7,147 7,132 Total net assets 49,988 48,875 Total liabilities and net assets 82,021 77,862
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6 (2) Quarterly Consolidated Statements of Income and Comprehensive Income (Quarterly Consolidated Statements of Income) (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Net sales of completed construction contracts 14,734 11,427 Cost of sales of completed construction contracts 12,081 9,778 Gross profit on completed construction contracts 2,653 1,648 Selling, general and administrative expenses 1,215 1,307 Operating profit 1,437 341 Non-operating income Interest income 0 0 Dividend income 98 113 Gain on sale of scraps 2 7 Other 11 10 Total non-operating income 112 130 Non-operating expenses Interest expenses 9 1 Guarantee commission for advances received 4 3 Other 1 1 Total non-operating expenses 15 6 Ordinary profit 1,535 465 Extraordinary income Gain on sale of investment securities - 289 Total extraordinary income - 289 Extraordinary losses Loss on retirement of non-current assets 1 0 Total extraordinary losses 1 0 Profit before income taxes 1,534 753 Income taxes 483 285 Profit 1,050 468 Profit attributable to non-controlling interests 127 36 Profit attributable to owners of parent 923 431
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7 (Quarterly Consolidated Statements of Comprehensive Income) (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Profit 1,050 468 Other comprehensive income Valuation difference on available-for-sale securities 22 (59) Remeasurements of defined benefit plans, net of tax (3) (15) Total other comprehensive income 18 (74) Comprehensive income 1,069 394 Comprehensive income attributable to Comprehensive income attributable to owners of parent 941 359 Comprehensive income attributable to non-controlling interests 127 34
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8 (3) Notes to Quarterly Consolidated Financial Statements (Notes on accounting treatment specific to the preparation of quarterly consolidated financial statements) (Calculation of tax expenses) Tax expenses have been calculated by reasonably estim ating the effective tax rate after applying tax effect accounting to profit before income taxes for the consolidat ed fiscal year including the first quarter of the fiscal year under review, and multiplying profit before income taxes by this effective tax rate. (Notes on segment information, etc.) [Segment information] I. For the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025) Information on net sales and profit (loss) by reporting segment (Millions of yen) Reportable segment Other (Note 1) Total Adjustment (Note 2) Amount recorded in quarterly consolidated statements of income (Note 3) MEC MMB Net sales Net sales to outside customers 10,252 4,426 7 14,686 48 14,734 Inter-segment net sales or transfers 185 2 2,128 2,316 (2,316) - Total 10,437 4,428 2,135 17,002 (2,267) 14,734 Segment profit 1,047 388 2, 047 3,484 (2,046) 1,437 (Notes) 1. The “Other” category refers to the Company (a pure holding company), which is not attributable to any reportable segment. 2. The details of the adjustment are as follows: (1) The adjustment for net sales represents progress rate adjustments for inter-segment transactions and eliminations of inter-segment transactions. (2) The adjustment for segment profit represents effects from progress rate adjustments for inter- segment transactions of ¥0 million, eliminations of inter-segment transactions of negative ¥1,959 million, and corporate expenses of negative ¥88 million. Corporate expenses are mainly general and administrative expenses not attributable to any reportable segment. 3. Segment profit is adjusted to operating profit on the quarterly consolidated statements of income.
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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) by reporting segment (Millions of yen) Reportable segment Other (Note 1) Total Adjustment (Note 2) Amount recorded in quarterly consolidated statements of income (Note 3) MEC MMB Net sales Net sales to outside customers 7,212 4,187 6 11,405 21 11,427 Inter-segment net sales or transfers 294 - 1,346 1,641 (1,641) - Total 7,506 4,187 1,352 13,047 (1,619) 11,427 Segment profit 246 130 1,193 1,570 (1,229) 341 (Notes) 1. The “Other” category refers to the Company (a pure holding company), which is not attributable to any reportable segment. 2. The details of the adjustment are as follows: (1) The adjustment for net sales represents progress rate adjustments for inter-segment transactions and eliminations of inter-segment transactions. (2) The adjustment for segment profit represents effects from progress rate adjustments for inter- segment transactions of ¥7 million, eliminations of inter-segment transactions of negative ¥1,078 million, and corporate expenses of negative ¥159 million. Corporate expenses are mainly general and administrative expenses not attributable to any reportable segment. 3. Segment profit is adjusted to operating profit on the quarterly consolidated statements of income. (Notes in the case of significant changes in shareholders’ equity) Not applicable. (Notes on going concern assumption) Not applicable. (Notes on quarterly consolidated balance sheets) 1. Guarantee obligations We guarantee the obligations for loans extended by financial institutions to employees as follows: (Millions of yen) As of March 31, 2026 As of June 30, 2026 Employees (debt obligations for housing financing) 1 1 2. Some of our consolidated subsidiaries have concluded commitment line agreements based on the syndication method with five banks to efficiently procure working capital. The outstanding balances of these agreements are as follows: (Millions of yen) As of March 31, 2026 As of June 30, 2026 Total commitment line amount 7,500 7,500 Outstanding balance - - Difference 7,500 7,500
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10 (Notes on quarterly consolidated statements of cash flows) The quarterly consolidated statements of cash flows we re not prepared for the three months ended June 30, 2026. Depreciation (including amortization related to intangible assets) for the three months ended June 30, 2025 and 2026 was as follows: (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Depreciation 368 353 (Notes on significant subsequent events) (Acquisition of treasury shares) At the Board of Directors meeting held on August 6, 2026, the Company resolved to acquire its treasury shares pursuant to the provisions of Article 156 of the Comp anies Act, as applied by replacing the relevant terms pursuant to the provisions of Article 165, Paragraph 3 of the same Act, as well as the specific method of acquisition. 1. Reason for acquisition of treasury shares The Company has decided to acquire its treasury shar es to improve capital e fficiency and enable the execution of a flexible capital policy in response to changes in the business environment. 2. Details of the resolution by the Board of Directors regarding the acquisition of treasury shares (1) Method of acquisition: Purchase through off-auction own share repurchase trading system (ToSTNeT-3) of the Tokyo Stock Exchange (2) Class of shares to be acquired: Common shares (3) Total number of shares to be acquired: 400,000 sh ares (maximum) (Percentage of total number of issued shares (excluding treasury shares): 1.5%) (4) Total amount of share acquisition costs: ¥633,600,000 (maximum) (5) Planned date of purchase: August 7, 2026
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11 3. Supplementary Information Status of Production, Orders Received, and Sales (Consolidated) 1) Status of production Segment name For the three months ended June 30, 2025 For the three months ended June 30, 2026 For the fiscal year ended March 31, 2026 Amount (Millions of yen) Ratio (%) Amount (Millions of yen) Ratio (%) Amount (Millions of yen) Ratio (%) MEC 10,276 69.5 7,202 63.6 38,795 68.9 MMB 4,445 30.1 4,091 36.1 17,479 31.0 Other 7 0.1 6 0.1 12 0.0 Adjustment 48 0.3 21 0.2 68 0.1 Total 14,777 100.0 11,321 100.0 56,356 100.0 2) Status of orders received (Orders received) Segment name For the three months ended June 30, 2025 For the three months ended June 30, 2026 For the fiscal year ended March 31, 2026 Amount (Millions of yen) Ratio (%) Amount (Millions of yen) Ratio (%) Amount (Millions of yen) Ratio (%) MEC 9,095 84.0 7,497 39.7 30,706 60.7 MMB 1,725 15.9 11,400 60.3 19,859 39.3 Other 7 0.1 6 0.0 12 0.0 Total 10,828 100.0 18,904 100.0 50,577 100.0 (Order backlogs) Segment name As of June 30, 2025 As of J une 30, 2026 As of March 31, 2026 Amount (Millions of yen) Ratio (%) Amount (Millions of yen) Ratio (%) Amount (Millions of yen) Ratio (%) MEC 62,046 57.1 55,402 48.6 55,116 51.8 MMB 46,563 42.9 58,550 51.4 51,337 48.2 Other - - - - - - Adjustment (19) (0.0) (61) (0.0) (40) (0.0) Total 108,590 100.0 113,891 100.0 106,413 100.0 3) Status of sales Segment name For the three months ended June 30, 2025 For the three months ended June 30, 2026 For the fiscal year ended March 31, 2026 Amount (Millions of yen) Ratio (%) Amount (Millions of yen) Ratio (%) Amount (Millions of yen) Ratio (%) MEC 10,252 69.6 7,212 63.1 38,792 68.5 MMB 4,426 30.0 4,187 36.6 17,786 31.4 Other 7 0.1 6 0.1 12 0.0 Adjustment 48 0.3 21 0.2 68 0.1 Total 14,734 100.0 11,427 100.0 56,659 100.0