JGC (1963) Q2 2025 earnings summary

Executive summary

• Net sales for FY2024/FY2025 were flat to up 0.9% year-on-year at ¥406.7 billion, with gross profit slightly down to ¥27.3–27.4 billion and a gross margin of 6.7%, impacted by yen appreciation.

• Operating profit remained stable at ¥12.4 billion, while ordinary profit declined to ¥19.3–19.4 billion, mainly from foreign currency revaluation losses.

• Profit attributable to owners was flat to up 1.5% at ¥12.7–12.8 billion, aided by a lower effective tax rate; EPS rose to ¥52.87.

• Comprehensive income increased 6.6% year-over-year to ¥16.7 billion.

• Consolidated orders in the first half reached approximately ¥370 billion, with a full-year target of ¥970 billion.

Financial highlights

• Operating cash flow was strong at ¥58.3 billion, driven by project progress and receivables collection.

• Investment and financing cash flows were both negative ¥14.7 billion, reflecting asset acquisitions, bond redemption, and dividend payments.

• Cash and cash equivalents stood at ¥356.1 billion; total assets increased to ¥804.9 billion as of September 30, 2024.

• Equity ratio remained stable or improved slightly at 48.9%.

• Functional Materials Manufacturing net sales were ¥26–26.5 billion in the first half, with a full-year target of ¥52 billion.

Outlook and guidance

• Full-year FY2025 net sales forecast at ¥830.0 billion, with operating profit projected at ¥26.0 billion and profit attributable to owners at ¥23.0 billion; annual dividend forecast maintained at ¥40 per share.

• Full-year forecasts remain unchanged despite delays in project decisions and a 38% progress rate in new contracts.

• Demand for natural gas and LNG is expected to remain strong, with clients advancing capital investments in transitional energy and sustainability.

• Domestic investment plans in hydrogen, SAF, and biopharmaceuticals are progressing, though some are delayed due to subsidy timing and high costs.

• Second half focus includes major LNG projects in Indonesia and Africa, and expansion in catalysts and fine chemicals.