Taisei (1801) Q2 2026 earnings summary

Executive summary

• Net income for the first half of FY2025 reached ¥63.6 billion, up 41.9% year-over-year, with profit and margin improvements across all segments.

• Gross profit margins improved significantly in civil engineering (21.9%) and building construction (10.7%).

• Operating income doubled to ¥81.2 billion, and the acquisition of Toyo Construction Co., Ltd. contributed to asset growth and segment synergies.

• Upward revisions to full-year forecasts reflect M&A impact, improved profitability, and cross-shareholding reduction.

• Net income for FY2025 is expected to reach a record high, with annual dividend raised to ¥250 per share.

Financial highlights

• Q2 FY2025 net sales: ¥907.8 billion, down 4.7% year-over-year; net income: ¥63.6 billion, up 41.9%.

• Gross profit for Q2 increased by 54.3% year-over-year, driven by margin improvements.

• Operating income for Q2 rose 100.5% year-over-year to ¥81.2 billion; ordinary income: ¥83.9 billion, up 68.7%.

• Net income per share: ¥378.30, up ¥134.31 year-over-year.

• Comprehensive income: ¥81.1 billion, up from ¥9.4 billion year-over-year.

Outlook and guidance

• Full-year net income forecast revised upward to ¥137.0 billion, up ¥57.0 billion from initial forecast.

• Net sales forecast for FY2025 revised to ¥2,090.0 billion, up ¥130.0 billion from initial forecast.

• Operating income forecast for FY2025 raised to ¥148.0 billion (+46.5%).

• Orders received expected to reach ¥2,190.0 billion (+6.3%).

• Dividend payout ratio set at a minimum of 30%, with annual dividend raised to ¥250 per share.