We sincerely appreciate your support and patronage as usual.

In fiscal year 2025, the Japanese economy has recovered gradually with improvements in the employment and income situation.
However, uncertainty regarding the future outlook persists due to developments in U.S. trade policy, continued price increase, fluctuation of financial and capital markets as well as rising geopolitical tensions in the Middle East and the accompanying soaring energy prices and other factors.

In the construction market, public investment continues to be strong, even though the effects of soaring prices of materials and equipment as well as rising labor costs must continue to be closely monitored. The market is expected to continue growing steadily in the future based on disaster prevention and mitigation measures outlined in “The 1st Mid-term Plan for the Implementation of National Resilience” approved by the Cabinet in June 2025 as well as security infrastructure improvement associated with defense buildup.

As for the consolidated performances during the fiscal year 2025, we recorded net sales of ¥358,697 million (increased by 8.5% year on year), operating profit of ¥24,199 million (increased by 17.3% year on year), ordinary profit of ¥24,600 million (increased by 22.6% year on year), and profit attributable to owners of parent of ¥19,361 million (increased by 29.9% year on year).

We have formulated the Medium-term Management Plan <2026-2028> “Growth of Human Resources and Businesses that Respond to Societal Demands,” in March 2026.

In the Medium-term Management Plan <2026-2028>, aiming to realize the Long-term Vision <TOA2035>, which defines the ideals of “Build a prosperous society and connect all the people over the world for the better future.”, and achieve net sales of ¥500 billion and operating profit of ¥30 billion by fiscal year 2035, we have clarified the financial figures and the number of Group employees required to achieve these goals and have specified the action plans to be implemented over the 3 year period starting in fiscal 2026.

We will continue to advance our business and sustainability strategies, with the aim of enhancing organizational capabilities and capacity by human resource strategies, productivity improvement measures, and DX strategies in each business unit and administrative department, and we will pursue sustainable growth and the enhancement of our medium- to long-term corporate values.

On April 7, 2026, a serious accident occurred at Demolition Project in Ogishima which our company is currently carrying out. We take this matter extremely seriously and are working to verify and analyze the facts in order to formulate measures to prevent a recurrence to be implemented fully by us.

We sincerely request your continued understanding and support.

Takeshi Hayakawa
President and Representative Director
TOA CORPORATION
June 2026