Toda (1860) Q2 2026 earnings summary

Executive summary

• Consolidated net sales for the interim period ended September 2025 rose 19.7% year-over-year to ¥288.9 billion, driven by growth in domestic construction, architectural construction, and real estate sales.

• Operating profit surged 116.7% year-over-year to ¥12.9 billion, reflecting improved profitability in construction and real estate segments.

• Net profit attributable to owners of parent increased 78.0% year-over-year to ¥12.7 billion, boosted by gains on sale of investment securities.

• Ordinary profit increased 95.5% year-over-year to ¥15.3 billion, aided by higher non-operating income from investment securities.

• The company is executing a Medium-Term Management Plan focused on profitability and strategic investments in energy, environment, and overseas businesses.

Financial highlights

• Gross profit margin improved to 13.4% from 11.9% year-over-year, with gross profit rising 35.1% to ¥38.7 billion.

• Ordinary income nearly doubled, up 95.5% year-over-year to ¥15.3 billion.

• Orders received (non-consolidated) declined 1.0% year-over-year to ¥231.4 billion, mainly due to a decrease in private-sector construction orders.

• Total assets as of September 30, 2025, were ¥950.4 billion, up 2.9% from March 31, 2025, with equity ratio rising to 37.8%.

• Basic earnings per share for the interim period was ¥42.55, up from ¥23.71 a year earlier.

Outlook and guidance

• FY2025 consolidated net sales forecast at ¥630.0 billion, up 7.4% year-over-year.

• Operating profit projected at ¥30.0 billion (+12.6% YoY), net profit at ¥28.4 billion (+12.8% YoY), and ordinary profit at ¥33.3 billion (+14.5% YoY).

• Basic earnings per share for the full year forecasted at ¥94.63.

• Medium-term management plan targets net sales of ¥800 billion and operating profit of ¥43.5 billion or more by FY2027.

• ROE target set at 10% or higher, with a total payout ratio of approximately 70%.