Nippon Densetsu Kogyo (1950) Q2 2026 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2025, rose 3.7% year-over-year to ¥78,419 million, driven by robust capital investment from railway companies and strong private-sector demand, especially from data centers.

• Operating profit surged 703% year-over-year to ¥2,721 million, with ordinary profit up 247.5% to ¥3,607 million.

• Profit attributable to owners of parent increased sharply to ¥2,831 million from ¥284 million a year earlier.

• Comprehensive income for the period reached ¥7,701 million, a significant turnaround from a loss of ¥599 million in the prior year.

• Backlog carried over to the next half reached a record high, ensuring a strong pipeline of construction work.

Financial highlights

• Q2 FY2025 net sales: ¥78,419 million, up 3.7% year-over-year.

• Operating profit: ¥2,721 million, up 703% year-over-year.

• Profit attributable to owners of parent: ¥2,831 million, up 895% year-over-year.

• Gross profit margin improved to 13.3% from 10.1% year-over-year, with gross profit rising to ¥10,405 million.

• Backlog at period end: ¥202,241 million, up 4.9% year-over-year.

Outlook and guidance

• FY2025 net sales forecast: ¥230,480 million, up 6.2% from FY2024.

• Profit attributable to owners of parent expected to reach ¥13,380 million, surpassing previous record.

• Operating profit forecast to slightly decrease to ¥17,660 million due to absence of one-off profit growth factor.

• Ordinary profit projected at ¥18,900 million (down 2.6%).

• Annual dividend forecast raised to ¥92.00 per share.