Takamatsu Construction Group (1762) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2025 rose 19.1% YoY to ¥78,130 million, with operating profit up 21.6% to ¥981 million and ordinary profit up 3.8% to ¥997 million.

• Profit attributable to owners of parent was ¥166 million, reversing a loss of ¥153 million in the prior year.

• Orders received increased 1.9% YoY to ¥84,139 million, reflecting a solid construction market despite ongoing cost pressures.

Financial highlights

• Gross profit increased to ¥9,158 million from ¥8,852 million YoY, but gross profit margin declined by 1.8pt to 11.7%.

• Comprehensive income for Q1 was ¥409 million, up from ¥76 million in the prior year.

• Equity-to-asset ratio improved to 55.7% from 54.7% at the previous fiscal year-end.

• Net assets decreased by ¥1,509 million to ¥132,559 million, mainly due to dividend payments.

• Operating profit margin slightly up by 0.1pt to 1.3%.

Outlook and guidance

• Full-year forecast maintained: net sales ¥350,000 million (+11.9% YoY), operating profit ¥15,000 million (+28.7% YoY), ordinary profit ¥14,000 million (+23.8% YoY), profit attributable to owners of parent ¥8,000 million (-12.7% YoY).

• Dividend for FY ending March 2025 planned at ¥82 per share, with a payout ratio of 35.7%.

• No revisions to previously announced earnings or dividend forecasts.