E・J Holdings <2153> announced its consolidated financial results for the first quarter of the fiscal year ending in May 2025 (June-August 24). Revenue decreased by 3.9% year-on-year to 3.082 billion yen, operating loss was 1.053 billion yen (compared to a loss of 0.952 billion yen in the same period of the previous year), ordinary loss was 1.005 billion yen (compared to a loss of 0.893 billion yen), and net quarterly loss attributable to the parent company's shareholders was 0.869 billion yen (compared to a loss of 0.656 billion yen).

In the first quarter of the fiscal year, the management environment of the construction consulting industry to which the consolidated group belongs was characterized by stable business volume in the domestic market, with public project-related budget allocations by the Ministry of Land, Infrastructure, Transport and Tourism for the 2024 fiscal year at nearly the same level as the previous year. Budget allocations related to the group's business activities surpassing the previous year's scale include strong promotion of disaster prevention and reduction, enhancement of national resilience, realization of sustainable infrastructure maintenance, concentrated support for disaster prevention, reduction, and aging countermeasures, strategic and planned advancement of social capital development, promotion of Green Transformation (GX), indicating a continued favorable management environment. Geopolitical risks have been observed in overseas operations, but gradual improvement is evident. To achieve the target values of the 5th Medium-Term Management Plan in the final year of the current period, focusing on revenues of 38.5 billion yen, operating profit of 4.85 billion yen, net income attributable to the parent company's shareholders of 3.35 billion yen, and ROE exceeding 10%, the fundamental three principles of the 5th Medium-Term Management Plan remain: strengthening existing businesses, expanding service areas, enhancing responsiveness to diversifying needs, and establishing a management foundation that can flexibly adapt to environmental changes. The company is moving forward emphatically to enhance business strategies, expand business domains, optimize the value chain across the company, strengthen management functions, manage operations with awareness of capital costs and stock prices, and enhance sustainability efforts.

Due to the characteristic of the majority of orders coming from public institutions, sales revenue tends to be biased towards the fourth quarter due to concentrated delivery deadlines at the fiscal year-end. On the other hand, fixed costs, sales expenses, and general administrative expenses occur almost evenly month by month, leading to a business structure where profitability is less likely to increase until the cumulative period of the third quarter.

Regarding the consolidated performance forecast for the full fiscal year ending in May 2025, production actuals for the cumulative period of the first quarter show a 101.8% year-on-year increase to 7.474 billion yen, and order backlog is progressing generally as planned, at 102.8% year-on-year increase to 33.706 billion yen compared to the previous year. The overall business environment surrounding the group is within expected conditions. Given the unclear impact of the subsidiary Tokai Soil Research, fully acquired on September 30, 2024, sales revenue is maintained at 38.5 billion yen, a 3.5% increase over the previous period, operating profit at 4.85 billion yen, an 11.5% increase, ordinary profit at 4.95 billion yen, a 7.7% increase, and net income attributable to the parent company's shareholders at 3.35 billion yen, a 10.5% increase over the previous year, in line with the initial plan.