Daiei Kankyo (9336) Q3 2025 earnings summary

Executive summary

• Net sales for FY2025/3 3Q reached 58,913 million yen, up 7.8% year-on-year, driven by infrastructure demand and expanded recycling operations.

• Operating profit was 15,676 million yen, up 3.6% year-on-year; profit attributable to owners of parent rose 2.3% to 10,556 million yen.

• Full-year forecasts revised upward: net sales 79,700 million yen (+1,200 million yen vs. initial), operating profit 21,000 million yen (+500 million yen vs. initial).

• Growth supported by four M&A deals and cost reductions, offsetting higher goodwill amortization.

• Interim dividends paid in Dec. 2024; shareholder incentive program introduced.

Financial highlights

• EBITDA for 3Q YTD was 20,240 million yen (+3.4% year-on-year), with an EBITDA margin of 34.4%.

• Operating profit margin for 3Q YTD was 26.6%, down 1.1pt year-on-year.

• Profit attributable to owners of parent was 10,556 million yen (+2.3% year-on-year), margin 17.9%.

• Gross profit increased to 25,878 million yen from 24,229 million yen year-on-year.

• Basic earnings per share for the nine months was 106.89 yen.

Outlook and guidance

• Full-year net sales forecast revised to 79,700 million yen, up 9.2% year-on-year; operating profit to 21,000 million yen (+6.6%).

• Ordinary profit forecast at 21,100 million yen (+2.5%), profit attributable to owners of parent at 14,300 million yen (+5.4%).

• Full-year basic EPS forecast at 145.07 yen; dividend forecast raised to 48 yen per share.

• Waste volume received forecast reduced by 20,000 tons due to extended construction periods; focus on high unit-price waste.

• Capital expenditures for FY2025/3 revised to 12,450 million yen; increased goodwill amortization due to M&A.