Enbio Holdings (6092) Q1 FY2027 Financial Results Deep Dive Report

Overview and Financial Summary

Enbio Holdings, Inc. (Securities Code: 6092) announced its consolidated financial results for the first quarter of the fiscal year ending March 31, 2027 (April 1, 2026 – June 30, 2026) . The company delivered a robust performance, with both revenue and profit at all levels significantly exceeding the same period last year.

Growth was driven by the successful execution of large-scale property sales in the core Real Estate Revitalization Business (formerly Brownfield Utilization Business) , as well as an increase in total power generation capacity and the expansion of renewable energy supply services, including off-site PPAs, in the Natural Energy Business . Notably, the company renamed its reporting segments starting this quarter: the "Soil Contamination Countermeasures Business" is now the "Environmental Solutions Business," and the "Brownfield Utilization Business" is now the "Real Estate Revitalization Business."

Below is a comprehensive analysis covering 10 key topics, including performance highlights, factor analysis, segment-specific details, full-year outlook, and the strengthened shareholder return policy.

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1. Q1 FY2027 Consolidated Financial Highlights

Consolidated financial results for the first quarter are as follows:

• Revenue : ¥2,841 million (+16.5% YoY)
• Operating Profit : ¥407 million (+246.3% / 3.46x YoY)
• Ordinary Profit : ¥439 million (+1,305.3% / 14.05x YoY)
• Profit Attributable to Owners of Parent : ¥298 million (+3,194.1% / 32.94x YoY)
• EBITDA : ¥541 million (+120.2% YoY)

Slide Commentary (PAGE_4: Operating Results and Quarterly Trends)

The slide above provides a comprehensive overview of the quarterly performance, trends, and key financial indicators. Compared to Q1 results from recent years, the operating profit of ¥407 million shows a marked recovery both quarter-on-quarter and year-on-year. Beyond revenue growth, the operating profit margin improved sharply from 4.8% to 14.3% . Furthermore, the equity ratio rose to 42.8% (+2.3 points from the end of the previous fiscal year), and net debt was reduced to ¥6,578 million , demonstrating simultaneous improvements in balance sheet health and profitability.

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2. Analysis of Key Factors Affecting Ordinary Profit

The significant increase in ordinary profit of ¥408 million —rising from ¥31 million in the same period last year to ¥439 million this quarter—is attributed to several key factors:

1. Revenue Growth and Cost Improvement (+¥103 million / +¥226 million) : In addition to the ¥403 million increase in revenue, an 8.0% improvement in the company-wide cost-to-sales ratio contributed significantly to gross profit.
2. Foreign Exchange Gains (+¥34 million) : As the yen weakened from ¥144.82/USD at the end of the previous fiscal year to ¥162.45/USD , foreign exchange gains were recorded on foreign currency-denominated assets.
3. Reversal of Allowance for Doubtful Accounts (+¥36 million) : Asset sales related to the discontinued Turkish operations led to the reversal of the allowance for doubtful accounts.
4. Increase in SG&A Expenses (Personnel costs -¥25 million, Recruitment/Training -¥15 million, Interest expenses -¥10 million) : While personnel and recruitment costs rose to strengthen the growth foundation, the total increase in SG&A expenses was limited to 7.8% against a 16.5% revenue growth, leading to a lower SG&A ratio and a substantial boost in operating profit.

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3. Deep Dive into Segment Performance

Each business segment played a distinct role this quarter, with varying levels of performance.

① Real Estate Revitalization Business (Driving growth with significant revenue and profit increases)

• Revenue : ¥974 million (+117.4% YoY)
• Segment Profit : ¥253 million (+858.9% YoY)

Performance was driven by the acquisition of multiple properties, such as a factory site in Hiratsuka (acquired after soil surveys were completed following company closure), the completion of a retail development project in Yamato, the sale of a revitalization project in Sumida to a developer, and steady land rent income from a project in Yachiyo. This segment has recovered sharply from the previous year's sluggish sales and now accounts for 64.8% of total segment profit.

② Environmental Solutions Business (Revenue decline, but profit growth achieved through high margins)

• Revenue : ¥1,122 million (-15.6% YoY)
• Segment Profit : ¥43 million (+10.3% YoY)

Revenue declined as rising land acquisition and construction costs in the real estate market caused delays in the start of several soil contamination remediation projects. However, segment profit increased due to cost-reduction efforts in prime contracting and the contribution of high-value-added projects, such as the launch of large-scale in-situ purification wall construction (PlumeStop method) at active factories. Large-scale retail construction contracts and environmental due diligence orders remain steady.

③ Natural Energy Business (Surpassing 100MW total capacity with stable earnings)

• Revenue : ¥745 million (+12.8% YoY)
• Segment Profit : ¥94 million (+11.8% YoY)

Domestic and international solar power plants operated smoothly, and the new "LS Narita" plant commenced operations. The group's total power generation capacity (including those under construction) reached 105.4MW (64 projects, 65.9MW panel output), exceeding the 100MW target. Furthermore, the renewable energy portfolio is diversifying, with the start of a 30MW energy storage project and the commencement of commercial operations at a 3.4MW small-scale hydroelectric plant held by an Indonesian affiliate (MEL).

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4. Full-Year Forecast and Order Progress

The full-year consolidated earnings forecast for FY2027 remains unchanged:

• Revenue : ¥13,630 million (+7.9% YoY)
• Operating Profit : ¥1,220 million (-24.7% YoY)
• Ordinary Profit : ¥1,060 million (-33.7% YoY)
• Profit Attributable to Owners of Parent : ¥690 million (+160.1% YoY)
• Earnings Per Share (EPS) : ¥85.00

The year-on-year decline in operating and ordinary profit forecasts reflects the absence of one-time factors recorded in the previous year (such as Turkey-related gains and high-yield projects). However, net profit is expected to grow significantly from ¥265 million to ¥690 million .

Slide Commentary (PAGE_15: Segment Order Status)

This slide, showing order and sales progress as of July 17, 2026, is critical for assessing the achievement of full-year targets:

• Environmental Solutions Business : Against a full-year target of ¥6,195 million, ¥3,551 million (approx. 57.3% progress) has been secured through Q1 results and order backlogs.
• Real Estate Revitalization Business : Against a full-year target of ¥4,170 million, the combination of Q1 results and order backlogs/prospects indicates a very high probability of meeting the target.
• Natural Energy Business : Against a full-year target of ¥3,265 million, the 100% achievement line is already visible through Q1 results and planned stock-type revenue.

With the stock-type Natural Energy Business and the high-certainty pipeline of the other two segments, the foundation for achieving the full-year forecast is solid.

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5. Significant Strengthening of Shareholder Returns and Benefits

Enbio Holdings prioritizes capital efficiency and shareholder returns, implementing proactive measures in line with its "Medium-Term Management Plan 2030."

Slide Commentary (PAGE_17: Shareholder Return Policy)

The slide above outlines the dramatic increase in dividends and the shareholder benefit program.

1. Substantial Dividend Increase : Planned dividend is ¥24.00 per share for FY2027, a 2.67x increase from the ¥9.00 per share paid in FY2026. This brings the total dividend to ¥194 million, with a total shareholder return of ¥226 million and an expected payout ratio of 32.9% .
2. Clear Dividend Policy : The company has adopted a "progressive dividend" policy, with a DOE (Dividend on Equity) of 2% as a floor and a target payout ratio of over 20%. By the final year of the medium-term plan, the goal is a DOE of 4% and a payout ratio of 30% .
3. Introduction of Shareholder Benefits : Shareholders holding 700 shares or more as of the end of September each year receive points exchangeable for food or electronics on a special website. Long-term holding incentives are also available to foster a stable investor base.

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Summary (Key Takeaways and Outlook)

The Q1 FY2027 results mark a strong start, driven by the V-shaped recovery of the Real Estate Revitalization Business and the growth of the Natural Energy Business (reaching 100MW) .

Key points to watch moving forward:

• Progress of delayed projects in the Environmental Solutions Business from Q2 onwards and capturing environmental needs such as PFAS countermeasures.
• Sales schedule of properties in the Real Estate Revitalization Business and expansion of the acquisition pipeline.
• Revenue contribution from the 30MW energy storage project and full-scale operations of overseas (Indonesia, etc.) projects in the Natural Energy Business.
• Implementation of the ¥24 dividend and continued improvement in capital efficiency toward higher DOE.

Guided by the purpose of "tackling environmental issues with technology and wisdom," the synergy across the three segments—ranging from soil and water remediation to renewable energy and real estate revitalization—underpins the company's sustainable growth story.