Taisei (1801) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 saw record-high profits at all profit stages, driven by significant gross margin improvements in Civil Engineering and Building Construction.

• Net sales for the quarter ended June 30, 2025, decreased 3.7% year-over-year to ¥440.3 billion, mainly due to a decline in the building construction business.

• Operating income surged 109.1% year-over-year to ¥39.2 billion, and net income attributable to owners of parent increased 26.3% to ¥29.5 billion.

• Comprehensive income reached ¥32.9 billion, up from ¥0.6 billion in the prior year period.

• New orders increased year-over-year, particularly in Building Construction due to a large-scale domestic project.

Financial highlights

• New orders rose to ¥630.5bn, up ¥113.0bn year-over-year; net sales decreased to ¥440.3bn, down ¥16.7bn.

• Gross profit increased to ¥67.8bn (up ¥24.7bn), with a gross profit margin of 15.4%, up 6.0 points year-over-year.

• Operating income reached ¥39.2bn, up ¥20.4bn; net income attributable to owners of parent was ¥29.5bn, up ¥6.1bn.

• Net income per share rose to ¥173.42, up ¥46.69 year-over-year.

• Equity ratio increased to 38.0% from 35.7% as of June 30, 2025.

Outlook and guidance

• FY2025 Q1 new orders represent 30.6% progress toward the full-year forecast; net sales at 22.5% of annual target.

• Full-year forecast for FY2025 remains unchanged: net sales ¥1,960 billion (+9.0%), operating income ¥101 billion (+15.9%), net income attributable to owners of parent ¥80 billion (+35.4%).

• Dividend forecast for FY2025 is ¥150 per share, up from ¥145 in FY2024.

• Management remains focused on achieving reduction of cross-shareholdings to less than 20% of consolidated net assets by end of FY2026.

• No revisions to previously announced consolidated forecasts.