Welcome to today's financial results presentation. Today's presentation will focus on the following three agenda items: second quarter financial results for fiscal year 2025, the end of fiscal year forecast, and lastly, progress made in the execution of the midterm management plan and future actions towards the end of the fiscal year. Allow me to start with the highlights from the second quarter. Orders received were strong, increasing by 11.7% on a year-over-year basis. Sales remained steady, equivalent to the same period last year, and while operating income decreased by 12%, this decline was in line with initial company forecasts. We'll be going over the details in a moment.
Net income decreased by 23% due to the impact of extraordinary losses. In terms of the full year forecast, sales and profits are expected to increase as planned. Conversely, the net income forecast has been revised downward due to the impact of extraordinary losses recorded in the second quarter. Lastly, as it stands, we expect to maintain the dividend forecast at JPY 75 per share, corresponding to a planned dividend payout ratio of 33.1%. Next are the consolidated financial highlights for the second quarter. Orders received stood at JPY 60.9 billion, a year-over-year increase of 11.7%, resulting from strong results in the domestic and overseas segments.
Orders received from local governments in Nippon Expressway Company boosted sales in Japan, while large-scale orders received in Asia drove the overseas business. Sales stood at JPY 50.8 billion, slightly higher, but very close to the results for the comparable period last fiscal year. Operating income came in at just under JPY 6 billion, in line with the forecast. Results were affected by an increase in SG&A expenses on a consolidated basis, a deterioration in the cost of sales ratio in some projects, and lower margins for the overseas business. Lastly, net income attributable to owners of the parent stood at JPY 3.8 billion.
The horizontal bar graph shows progress on each line item versus the revised full fiscal year forecast. As of the end of the second quarter, the progress rates versus the forecast were approximately 60% for orders received, 50% for sales, and 60% for both operating income and net income attributable to owners of the parent. This graph shows the trend of first half orders received, sales, and operating income margin on a consolidated basis. Orders received, shown here in the navy-colored bar, are on track, as are sales, which continue on a growth trajectory.
Lastly, while the operating income margin peaked back in the second quarter of 2023, we nevertheless expect to exceed our margin target of 10% for 2025. Next is the consolidated profit and loss statement. The results in terms of orders received, sales, and operating income are as I described earlier. Ordinary profit came in at JPY 6 billion, which represents progress of approximately 60% versus the full fiscal year forecast, in line with the progress rate for operating and net income. Next is the consolidated balance sheet statement. Total assets increased by approximately JPY 2 billion due to an increase in accounts receivable and other factors.
Liabilities decreased by JPY 1.7 billion due to a decrease in short-term borrowings and other factors. As a result, the net worth ratio now stands at 71.6%, up 2.9 percentage points from the comparable period last year. I would now like to go over the results outlined by segment, starting with the domestic consulting engineering business. Our efforts of transforming the business portfolio have translated into an increase in orders received, which grew by approximately 10% on a year-over-year basis. Sales stood at JPY 35.8 billion, mostly in line with the results in the comparable period last fiscal year.
Operating income decreased to approximately JPY 6 billion due to a higher cost of sales ratio for some projects and an increase in SG&A expenses. This represents a year-over-year decrease of approximately 8.6%. The operating income margin stood at 16.6%, down 1.7 percentage points from the comparable period last fiscal year. A breakdown of the trend in orders received within the domestic consulting engineering business, starting with client type. The vertical bar graph on the left shows our orders by source. Starting at the bottom, we have the Ministry of Land, Infrastructure, Transport and Tourism, former public corporations and foundations, local government municipalities, and finally, private sector clients.
Looking at the actual numbers, we recorded JPY 19.4 billion in orders from the Ministry of Land, Infrastructure, Transport and Tourism, JPY 500 million more than during the comparable period last fiscal year. Orders from local municipalities soared by approximately JPY 2.1 billion. Orders from clients in the private sector also increased by JPY 400 million. The vertical bar graph on the right shows the order amounts by contract method. Starting at the bottom, we have proposals, comprehensive evaluation, government negotiated contracts, and price competition. We saw an increase in orders from the proposal contract method, while orders from the price competition method also rose by JPY 1.3 billion.
The vertical bar graph on the left contains an overview of the orders received amount by sector. Starting from the bottom, we have the sectors of water and land, transportation and urban, environment and social, and construction management. Orders increased by approximately JPY 1.8 billion on a year-over-year basis in the water and land sector, driven by a 50% increase in orders for water supply and sewerage projects. Orders also increased by JPY 1.1 billion in both the transportation and urban sector and the construction management sector, the latter of which has posted strong results driven by several multi-year projects.
The pie charts on the right show each sector as a percentage of the total amount in orders received. The breakdown remains virtually unchanged on a year-over-year basis. I would now like to go over the results outlined for the overseas consulting engineering business. Orders received stood at JPY 19.1 billion , a year-over-year increase of 16.3%. Conversely, sales were down slightly and came in at approximately JPY 15 billion . Operating income after goodwill amortization decreased by 86% on a year-over-year basis, primarily as a result of a worsening in the business progress ratio due to contract delays at CTI Engineering International last year.
Another significant factor was an increase in national insurance employer contributions at Waterman Group plc, which are a result of policy changes enacted by the new Labour government in the U.K. and persistently high personnel costs. The vertical bar graph on the left shows the trend in the orders received amount. Starting at the bottom, CTI Engineering International secured JPY 5.3 billion in orders, delivering tremendous year-over-year growth. Waterman's private sector-related business recorded order amounts in line with the comparable period last year, while the public sector-related side saw a slight decrease during the same period.
The order backlog, shown on the right, grew by approximately JPY 1.2 billion on a year-over-year basis, underscoring our efforts and success in securing orders. I would now like to discuss the end of fiscal year forecast. Circling back to what I said earlier, orders received increased by 11.7% on a year-over-year basis, delivering a very strong performance. Second, the carryover order backlog at the end of the second quarter increased by 8% year-over-year. Third, the cost of sales ratio and operating income are expected to remain in line with our full year plans. In light of this, the forecast for orders received, sales, and operating income remains unchanged on both a consolidated and non-consolidated basis.
Lastly, the full year forecast for net income has been revised downward by JPY 600 million due to the impact of the aforementioned extraordinary losses recorded in the second quarter. This applies on both a consolidated and non-consolidated basis. Today's final agenda item is an overview of the progress of the midterm management plan and future actions towards the end of the fiscal year. The first key topic within this overview of the progress of the midterm management plan is business portfolio transformation. Starting on the left, we have the results in our core business.
Projects from local government municipalities and primary government agencies are doing well, delivering year-over-year growth of JPY 1.16 billion, or 4%. We successfully accelerated activity in the growth area of our business portfolio, which grew by 21%, driven by good results in information provision and CMPM services. Our PFAS and PPP-related businesses did well, driving growth in the new business area, which grew by 43%. Lastly, as part of our new business initiatives, we had been engaged in the agricultural business. However, a lackluster performance in this business has informed our decision to transfer this business to Nakata Farm Company Limited, a company with the requisite expertise and capability and strong ties to the local community.
All shares of our agricultural subsidiary were transferred on July 1st, 2025. Next are our efforts in human capital, DX, and production system reform, with the goal of driving profit growth. A KPI within our efforts to enhance human capital is the number of engineers. As of the end of the second quarter, the engineer headcount stood at 1,750, having increased by 82 since the end of December 2024. We continue growing the engineer headcount and making progress in line with company expectations. We also made steady progress in reducing working hours, which decreased by 15 hours in the first half of the ongoing fiscal year.
Last, allow me to discuss future actions towards the end of the fiscal year. In the domestic consulting engineering business, we will strive to ensure quality, carry out work keeping profitability, and increase orders received in accordance with business portfolio transformation policies based on the midterm management plan. In the overseas consulting engineering business, CTI Engineering International aims to increase orders received and improve profitability by utilizing local subsidiaries. In addition to increasing orders received, Waterman aims to improve profitability by negotiating with clients to transfer increased national insurance employer contributions and higher personnel costs, and by streamlining the consulting engineering business in the U.K.
Lastly, within the scope of human capital and DX and production system reform, we will work to secure and utilize human resources by various recruitment methods and the implementation of systems that support various working styles. Other initiatives involve promoting the use of DX, including the automatic error detection systems we have already developed, the use of Generative AI at the overall group level, and improvements to the efficiency of administrative work by utilizing RPA and BI. This concludes today's financial results presentation. Thank you for your time.