During FY2025, business performance was driven by steadily converting continued strong demand, mainly for waste treatment plants, into orders. As a result, orders received significantly exceeded the initial target (250,000 million yen), reaching 333,026 million yen, an increase of 86,725 million yen compared to the previous fiscal year. Meanwhile, order backlog increased by 167,406 million yen to 745,158 million yen. Furthermore, net sales increased 14,458 million yen compared to the previous fiscal year to 165,620 million yen, due to an increase in the Domestic Environment and Energy Business and Package Boiler Business. Operating profit increased by 1,877 million yen to 15,409 million yen, while ordinary profit increased by 2,183 million yen to 16,279 million yen, compared to the previous fiscal year, due mainly to the strong growth of Domestic Environment and Energy Business. Also, profit attributable to owners of parent increased by 3,340 million yen to 13,732 million yen compared to the previous fiscal year period due to the recognition of a gain on sale of investment securities in addition to an increase in profit. As a result, orders received, order backlog, and profit attributable to owners of parent reached record highs.
During FY2025, orders received rose 73,916 million yen from the previous fiscal year to 288,709 million yen because efforts to take advantage of continued robust demand yielded orders for five reconstruction projects, mainly DBO, and two refurbishment projects for waste treatment plants, as well as four new energy plants construction projects, etc. In addition, net sales increased by 13,284 million yen from the previous fiscal year to 126,935 million yen, reflecting progress in previously ordered plants, and operating profit also rose by 2,543 million yen to 15,624 million yen, in line with the increase in net sales. In addition to continuing to work to maintain and expand our market position in the EPC business by securing orders for biomass power plants, sewage sludge incineration power plants, and other facilities with a focus on waste treatment plants, we will continue to strive to establish a revenue model that takes maximum advantage of our installed base, including by improving quality and strengthening profitability in our operations business by utilizing data, strengthening service life extension and solution proposals, and expanding our power retail business.
Orders received during FY2025 fell 786 million yen from the previous fiscal year to 1,561 million yen because of the absence of orders for new plants and a decrease in maintenance activities. Compared to the previous year, where significant progress was made on several previously ordered plants, net sales fell 1,910 million yen to 3,635 million yen, while operating profit fell 967 million yen to 102 million yen. In addition to continuing to work to secure orders for biomass power plants by differentiating our offerings from those of our competitors through the ability to accommodate a wider range of fuels, including new biomass fuels, we will continue to lay the groundwork for future performance and build structures to secure orders for Energy from Waste plants, including partnerships with local companies, so that we can capture future demand, particularly in Thailand and Taiwan.
During FY2025, orders received rose 10,598 million yen compared to the previous fiscal year to 30,865 million yen, net sales rose 7,000 million yen to 26,846 million yen, and operating profit rose 450 million yen to 1,844 million yen as a result of IHI Packaged Boiler Co., Ltd. becoming a consolidated subsidiary. We will continue to work to maintain and expand the domestic business with a focus on replacement demand and maintenance while striving to expand the overseas business through efforts centered on our local subsidiary in Thailand. Additionally, we will work to develop new heat source system markets anticipating the decarbonized society of the future, including by updating existing products like hydrogen, biomass, and electrical offerings. Furthermore, through the merger between Nippon Thermoener Co., Ltd. and IHI Packaged Boiler Co., Ltd. (effective April 1, 2026), we aim to capture economies of scale through increased domestic market share and maximize synergies.
During FY2025, orders received totaled 12,300 million yen, up 2,957 million yen from the previous fiscal year, thanks primarily to growth in the building equipment business. At the same time, net sales fell 4,033 million yen from the previous fiscal year to 8,524 million yen due to declines in both building equipment and semiconductor industry equipment business, but operating profit rose 157 million yen to 1,048 million yen mainly due to improved operating margin in the building equipment business. In the building equipment business, we will continue to work to steadily expand the scale of orders and profit by strengthening our sales and construction capabilities while emphasizing profitability in our efforts to secure orders. In addition, we will work to boost profits from semiconductor industry equipment by maintaining and expanding domestic sales and strengthening overseas sales.
