My name is Tatsuya Nishimura, Representative Director, President, and CEO at CTI Engineering. Allow me to walk you through our financial results for the second quarter of fiscal year 2026. Today's presentation covers three main topics: our financial results for the second quarter, the end of fiscal year forecast, and finally, the progress of the Mid-Term Management Plan and future actions towards the end of the fiscal year. First are the highlights of our financial results for the second quarter of fiscal year 2026. Looking at our second quarter performance, orders received are on track and remain on par with the same period of the previous year. Meanwhile, both sales and operating income delivered strong results, increasing by 8.3% and 10.7% year-on-year respectively. Looking at our full year forecast, we expect both sales and profits to increase, keeping us in line with our initial plan for fiscal 2026.
On the topic of shareholder returns, as announced on July 30th, we have revised our dividend upward by JPY 32 to a total of JPY 110 per share. Additionally, based on a comprehensive assessment of our growth investments and capital efficiency, we will acquire JPY 3 billion in treasury shares. Here are the financial highlights for the second quarter. Orders received reached JPY 61.053 billion, representing a 0.2% increase on a year-on-year basis. While the performance of some subsidiaries fell below initial expectations, overall performance was in line with the previous year. We recorded JPY 55.003 billion in sales, an 8.3% increase driven by strong orders received in the previous year. Sales exceeded the same period last year due to steady progress of projects. Operating income came in at JPY 6.617 billion, which corresponds to a 10.7% increase.
Steady progress has been made toward our full year targets due to ongoing improvements in the cost of sales ratio throughout the first half, securing profit levels that exceed the same period of the previous year. Let's now look at our progress against the full year plan. Orders received and sales tracked at 58.1% and 52.4% of our full year plan respectively. Operating income and net income attributable to owners of the parent both stood at approximately 63% of the full year target. This chart illustrates the first half trend for orders received, sales, operating income, and operating income margin. Operating income margin dipped in the second quarter of fiscal year 2025. That said, it edged up to 12% in the same period in fiscal 2026, marking a year-on-year improvement. Next is an outline of our profit and loss statement for the second quarter.
As I touched on earlier, orders received, sales, operating income, ordinary profit, and net income attributable to owners of the parent all exceeded the prior year's results. Let's now turn to the balance sheet. Total assets stood at JPY 99.4 billion, a JPY 3.1 billion increase driven by higher cash and deposits. Net assets came in at JPY 68.4 billion, representing a JPY 1.5 billion expansion, primarily fueled by growth in retained earnings. Lastly, our net worth ratio decreased by 0.7 percentage points to 68.4%. Next, I will report on our results by segment, starting with our Domestic Business . Orders received reached JPY 43.868 billion, up 4.9% year-on-year. Driven by strong demand from the Ministry of Land, Infrastructure, Transport and Tourism, orders received exceeded our results for the second quarter of fiscal year 2025.
We recorded JPY 37.726 billion in sales, a 5.3% year-on-year increase, while operating income came in at approximately JPY 6.3 billion, up 6.1% year-on-year. Our operating income margin stood at 16.7%, marking a 0.1 percentage point increase from the prior year. Now let's examine the orders received amount by client type on the left side of the slide. Looking at the breakdown by client type, orders received from the Ministry of Land, Infrastructure, Transport and Tourism reached JPY 22.2 billion, marking a significant increase over the second quarter of fiscal year 2025. Orders from local governments saw a slight dip against the large project-driven spike in the second quarter of fiscal year 2025. Despite this, they remain well above the levels recorded in the same period in fiscal year 2024. Meanwhile, orders received from the private sector grew to JPY 4.2 billion, also showing year-on-year growth.
Turning to the graph on the right, we outline orders received by contract method. Orders awarded under the proposal method remained largely flat year-on-year. Meanwhile, comprehensive evaluation orders reached JPY 10.1 billion, marking a significant increase over the same period. Combined, these technical competition methods accounted for 58% of our total orders, underscoring our competitive edge in technical bidding. Turning next to orders received by sector, the Water & Land Business Sector saw a slight increase over the second quarter of fiscal year 2025. Compared to that same baseline, the Transportation & Urban Business Sector grew by JPY 600 million, while the Environment & Social Business Sector recorded substantial growth. Lastly, the Construction Management Business Sector remained consistent with the results from that quarter. Overall, the proportional breakdown across our business sectors remained largely unchanged. I would now like to discuss our Overseas Consulting Engineering business .
Orders received experienced a slight decline against the large project-driven baseline of the second quarter of fiscal year 2025. Sales, however, remained firmly on track, reaching just under JPY 17.3 billion, a 15.4% increase over that same baseline. Additionally, operating income significantly exceeded results from the second quarter of fiscal year 2025, driven primarily by Waterman Group Plc, with this strong performance yielding an operating income margin of 1.9% after goodwill amortization. Let's look at the sales trends in the Overseas Consulting Engineering business . Orders at CTI Engineering International contracted against the large project-driven spike we saw in the second quarter of fiscal year 2025. This significant decline, however, was somewhat counterbalanced by Waterman Group Plc, which delivered substantial growth across both the private and public sectors as U.K. infrastructure spending resumed following delays tied to the recent change in government.
Moving to our order backlog, we successfully maintained overall volumes at levels consistent with the second quarter of fiscal year 2025, effectively absorbing the absence of a large-scale project at CTI Engineering International. Turning to our end-of-fiscal-year forecast, our overall outlook remains unchanged. In line with the initial plan, we expect both sales and operating income to increase on a consolidated as well as a non-consolidated basis. As part of this outlook, and as I will detail shortly, we are raising the dividend to JPY 110 per share for fiscal year 2026, up from JPY 75 last year. Under our Mid-Term Management Plan 2027, we target a dividend payout ratio of 30% or more. Guided by this policy and reflecting our performance through the second quarter and solid financial position, we are taking steps to further enhance shareholder returns.
Specifically, we have revised our initial year-end dividend forecast upward by JPY 32, bringing it to JPY 110 per share. Next, I will detail our acquisition of treasury shares. This initiative is designed to further enhance shareholder returns, directly aligning with our Mid-Term Management Plan 2027 policy of linking returns to the progress of our growth investments. Specifically, we will acquire a maximum of 1.2 million shares for up to JPY 3 billion, and the acquisition period will run from August 14th, 2026 through April 30th, 2027. Next, I will outline the progress on the Mid-Term Management Plan and our initiatives for the remainder of the fiscal year. Let's start with business portfolio transformation. Turning to sales by portfolio, our core business recorded JPY 29.353 billion, marking a 4% increase over the second quarter of fiscal year 2025. This growth was driven primarily by steady performance in MLIT-commissioned projects.
In our growth area, sales reached JPY 6.87 billion, up 7% compared to the same period last year. This was supported by steady progress in information services and our CM/PM business. Similarly, new business sales came in at JPY 1.364 billion, a 29% increase over that same baseline, fueled largely by water PPP and PFI projects. As part of rebuilding our growth foundation, we continued to strengthen our investment in human capital. Specifically, we added 102 engineers on a non-consolidated basis during the first half of fiscal year 2026, bringing our total to 1,854. This steady expansion keeps us in line with our target. Turning to our DX and production system reforms, working hours decreased by four hours compared to the same period last year. Looking at HC-ROI, our indicator for productivity improvement, we achieved a 4.3% year-on-year improvement.
On the quality and safety front, MLIT business awards increased from 68 in fiscal year 2025 to 79 in fiscal year 2026. Additionally, we recorded zero serious accidents and mistakes during the first half of fiscal year 2026, an improvement from the two incidents reported in fiscal year 2025. Looking ahead to the remainder of the fiscal year, our strategy for the Domestic Consulting Engineering business centers on three key objectives. We will further accelerate our business portfolio transformation to expand orders received and solidify our market position in growth areas. Operationally, we are utilizing AI and risk assessments to ensure quality and prevent serious errors. Lastly, we are actively cutting non-productive work to lower our SG&A expense ratio, directly addressing the cost increases we experienced in fiscal year 2025.
In the overseas business, we are focused on improving profitability and lowering our SG&A expense ratio by driving higher utilization rates through a steady influx of orders received. To achieve this at CTI Engineering International, we will expand our order book by securing targeted projects and deepening ties with our business partners. Meanwhile, Waterman Group Plc is streamlining its U.K. consulting operations and actively expanding its engineer secondment business to capitalize on public works spending trends. Concluding with human capital and DX production system reform, we are driving employee engagement by expanding flexible working arrangements, notably through the rollout of a new flexitime scheme. Concurrently, our training programs are actively cultivating professionals equipped with both deep technical expertise and strong proposal capabilities. To crown these effects, we are integrating AI-based tools directly into our business processes and management, ensuring we drive improvements in both productivity and quality.
This concludes my presentation. Thank you for your time today.