Takamatsu Construction Group (1762) Q3 2025 earnings summary

Executive summary

• Orders received rose 10.3% year-over-year to 275.3 billion yen, with net sales up 10.8% to 247.7 billion yen.

• Operating profit increased 3.7% to 6.8 billion yen, but ordinary profit declined 1.5% to 6.3 billion yen year-over-year.

• Net income attributable to owners of parent fell 11.1% year-over-year to 3.1 billion yen.

• Real estate and architecture segments drove growth, while civil engineering saw a decline in orders.

• The construction market remains solid, but profitability is pressured by rising costs and labor shortages.

Financial highlights

• Gross profit increased 3.5% year-over-year to 31.1 billion yen, but gross profit margin declined to 12.6%.

• Basic earnings per share decreased to 91.07 yen from 102.39 yen year-over-year.

• Equity-to-asset ratio dropped to 49.9% from 54.7% at the previous fiscal year-end.

• Net assets decreased by 344 million yen to 133.7 billion yen, mainly due to dividend payments and lower valuation of securities.

• Depreciation for the period was 1.48 billion yen; goodwill amortization was 126 million yen.

Outlook and guidance

• Full-year forecasts for orders, net sales, operating profit, and net income remain unchanged from previous guidance.

• Full-year net sales forecast at 350 billion yen, up 11.9% year-over-year.

• Operating profit projected at 13 billion yen, ordinary profit at 12 billion yen, and profit attributable to owners of parent at 7 billion yen (down 23.6% year-over-year).

• Annual dividend forecast maintained at 82 yen per share, with a payout ratio of 40.8%.