Toda (1860) Q1 2026 earnings summary

Executive summary

• Net sales for the three months ended June 30, 2025, rose 17.5% year-over-year to ¥131.3 billion, driven by progress in large-scale architectural projects despite a decline in civil engineering sales.

• Operating profit reached ¥4.0 billion, reversing an operating loss in the prior year, as gross profit increased 54.7% year-over-year to ¥16.2 billion.

• Ordinary profit surged 152.4% year-over-year to ¥6.1 billion, aided by non-operating income from investment securities.

• Net profit attributable to owners of parent declined 4.7% year-over-year to ¥3.5 billion due to lower gains on sale of investment securities.

• The company is executing its Medium-Term Management Plan 2027, focusing on profitability, energy/environment, and overseas expansion.

Financial highlights

• Gross profit margin improved to 12.4% from 9.4% year-over-year.

• SG&A expenses increased 14.9% year-over-year to ¥12.2 billion, mainly from higher personnel costs.

• Total assets decreased 3.6% from March 31, 2025, to ¥890.1 billion, while net assets fell 1.1% to ¥349.1 billion.

• Equity ratio stood at 38.0% as of June 30, 2025.

• Basic earnings per share for the quarter was ¥11.80, down from ¥12.23 a year earlier.

Outlook and guidance

• Full-year consolidated net sales forecast at ¥640.0 billion, up 9.1% year-over-year.

• Operating profit projected at ¥24.0 billion (up 9.9%), ordinary profit at ¥26.2 billion (up 9.9%), and net profit attributable to owners of parent at ¥21.0 billion (down 16.6%).

• Dividend forecast raised to ¥40.00 per share for FY2026.

• No changes to previously announced earnings guidance as of this report.