Toda (1860) Q2 2025 earnings summary

Executive summary

• Net sales rose 4.7% year-over-year to ¥241.2 billion, driven by growth in Architectural Construction and Civil Engineering.

• Operating income surged 87.7% year-over-year to ¥5.97 billion, reflecting improved profitability in core segments.

• Orders received (non-consolidated) increased 52.1% year-over-year to ¥233.7 billion, led by private-sector architectural and public-sector civil engineering projects.

• Net income attributable to owners of parent grew 37.7% year-over-year to ¥7.18 billion, aided by extraordinary gains.

• Comprehensive income dropped sharply to ¥1.63 billion from ¥23.71 billion a year ago, mainly due to valuation losses on securities.

Financial highlights

• Gross profit increased 24.3% year-over-year to ¥29.38 billion; gross margin improved to 12.2%.

• Operating profit margin rose from 1.4% to 2.5%.

• Ordinary income declined 4.9% year-over-year to ¥7.84 billion despite higher operating profit.

• Basic EPS for the interim period was ¥23.71, up from ¥16.81 a year earlier.

• Interim dividend set at ¥14.50 per share, with full-year forecast at ¥29.00 per share.

Outlook and guidance

• FY2024 consolidated net sales forecast at ¥600.0 billion, up 14.8% year-over-year.

• Operating income projected to rise 67.5% to ¥30.0 billion; net income to increase 67.7% to ¥27.0 billion.

• Orders received expected to remain stable at ¥500.0 billion.

• Continued investments in human capital and digitalization to drive SG&A expenses higher.

• No changes to previously announced earnings forecasts.