Daiei Kankyo (9336) Q2 2025 earnings summary

Executive summary

• Net sales for FY2025/3 2Q reached ¥38,158 million, up 7.5% year-on-year, driven by infrastructure project orders and expanded recycling operations.

• Operating profit increased 7.5% year-on-year to ¥10,160 million, supported by cost reductions and new subsidiary contributions.

• Profit attributable to owners of parent was ¥6,633 million, up 1.1% year-on-year.

• EBITDA reached ¥13,054 million (+7.0% year-on-year), with an EBITDA margin of 34.2%.

• Key initiatives include PPP project launches, expansion in plastic recycling, governance enhancements, and M&A activity.

Financial highlights

• Gross profit rose to ¥17,021 million from ¥15,513 million year-on-year.

• Operating profit margin remained stable at 26.6%.

• Basic earnings per share for the period were ¥67.08.

• Cash and cash equivalents at period-end were ¥40,275 million, down ¥11,849 million from the previous fiscal year-end.

• Property, plant, and equipment increased from M&A and ongoing construction.

Outlook and guidance

• FY2025/3 full-year net sales forecast is ¥78,500 million, with operating profit forecast at ¥20,500 million.

• Progress rates for 1H: net sales 100.3% of plan, operating profit 103.4%, EBITDA 103.5%.

• Annual dividend forecast revised to ¥46.00 per share.

• Waste management and recycling segments are ahead of plan; soil remediation lags at 79.3% of 1H target.

• Interim and year-end dividends planned, with a consolidated payout ratio target of 30% or higher.