Nippon Densetsu Kogyo (1950) Q2 2025 earnings summary

Executive summary

• Orders and net sales increased year-over-year, with Q2 FY2024 net sales at ¥75,625 million, up 6.5% year-over-year, driven by growth in information and communication systems, environmental energy, and large-scale redevelopment projects.

• Operating profit rose 5.3% year-over-year to ¥338 million, despite higher personnel and system expenses, with a strong backlog carried into the next half.

• Ordinary profit grew 17.6% year-over-year to ¥1,038 million.

• Profit attributable to owners of parent declined 41.2% year-over-year to ¥284 million due to extraordinary losses.

• Comprehensive income turned negative at ¥(599) million, compared to ¥3,879 million in the prior year.

Financial highlights

• Gross profit on completed construction contracts increased to ¥7,629 million from ¥7,358 million year-over-year.

• Selling, general and administrative expenses rose to ¥7,290 million from ¥7,036 million.

• Basic earnings per share dropped to ¥4.83 from ¥7.87 year-over-year.

• Total assets decreased to ¥253,369 million as of September 30, 2024, from ¥282,597 million at March 31, 2024.

• Backlog at period end: ¥192,772 million, up 9.8% year-over-year.

Outlook and guidance

• FY2024 net sales forecast: ¥205,160 million, a record high, up 5.7% year-over-year.

• Operating profit forecast: ¥14,670 million, up 9.1% year-over-year.

• Ordinary profit expected to reach ¥15,830 million, up 6.2% year-over-year.

• Profit attributable to owners of parent forecast: ¥10,500 million, up 4.6% year-over-year.

• Full-year basic earnings per share forecasted at ¥178.05.