Taisei (1801) Q1 2025 earnings summary

Executive summary

• New orders, net sales, and profits showed steady progress in both Civil Engineering and Building Construction segments year-over-year.

• Net sales for Q1 FY2024 rose 39.0% year-over-year to ¥457.1 billion, with operating income at ¥18.8 billion, reversing a loss in the prior year.

• Net income attributable to owners of parent was ¥23.4 billion, compared to a loss of ¥2.3 billion in Q1 FY2023.

• High profit progress due to lump-sum amortization of negative goodwill from M&A and sale of cross-shareholdings.

• Comprehensive income dropped sharply to ¥589 million from ¥23.5 billion year-over-year, mainly due to a large decline in valuation difference on available-for-sale securities.

Financial highlights

• New orders rose to ¥517.4bn, up ¥219.4bn year-over-year; net sales reached ¥457.0bn, up ¥128.1bn.

• Operating income improved to ¥18.8bn from a loss of ¥8.0bn in the prior year; net income attributable to owners of parent was ¥23.4bn, up from a loss of ¥2.3bn.

• Gross profit increased to ¥43.1bn, with gross margin at 9.4%, up 4.5pt year-over-year.

• Ordinary income reached ¥28.1bn, up from a loss of ¥4.4bn year-over-year.

• Net income per share rose to ¥126.73 from a loss of ¥12.10 year-over-year.

Outlook and guidance

• Full-year forecasts: new orders ¥1,910.0bn, net sales ¥1,990.0bn, operating income ¥87.0bn, net income attributable to owners of parent ¥65.0bn.

• Q1 progress rates: 27.1% for new orders, 23.0% for net sales, 21.6% for operating income, 35.9% for net income.

• Operating income projected at ¥87.0bn (+228.5%), ordinary income at ¥90.0bn (+131.3%), and net income at ¥65.0bn (+61.4%).

• Annual dividend forecast maintained at ¥130 per share.