Toyo Construction (1890) Q1 2026 earnings summary

Executive summary

• Q3 FY9/25 saw net sales decline 9.5% year-over-year, with operating profit down 63.4% and profit attributable to owners of the parent down 73.5% due to delayed large overseas orders and higher costs.

• Net sales rose 18.5% year-over-year to ¥40,030 million for the three months ended June 30, 2025, with operating profit at ¥634 million and profit attributable to shareholders at ¥539 million, aided by extraordinary income.

• Orders and order backlog reached record highs, driven by large projects in Ocean/Defense & Security and growth across all segments.

• Comprehensive income dropped sharply to ¥128 million from ¥1,165 million year-over-year, reflecting lower other comprehensive income.

• The company continues to focus on capital efficiency, sustainability, and technological development, especially in offshore wind power.

Financial highlights

• Net sales for Q3 FY9/25 were ¥23,445mn, down ¥2,475mn (-9.5%) year-over-year.

• Operating profit was ¥1,080mn, down ¥1,872mn (-63.4%) year-over-year; OPM fell from 11.4% to 4.6%.

• Ordinary profit dropped 60.1% year-over-year to ¥1,227mn; profit attributable to owners of the parent fell 73.5% to ¥609mn.

• Operating profit improved to ¥634 million from a loss of ¥351 million year-over-year.

• Gross profit increased to ¥3,909 million from ¥2,862 million year-over-year.

Outlook and guidance

• Full-year FY9/25 forecast revised downward: net sales now expected at ¥32,000mn (-3.0% vs. initial), operating profit at ¥1,500mn (-37.5%), and profit attributable to owners at ¥800mn (-54.3%).

• Full-year forecast for FY2026 remains unchanged: net sales ¥200,000 million (+15.9% YoY), operating profit ¥12,000 million (+3.0%), ordinary profit ¥11,100 million (+0.3%), profit attributable to shareholders ¥8,500 million (+2.3%), EPS ¥90.50.

• Delayed booking of large overseas orders and one-time Defense & Security costs cited; these projects are expected to boost next fiscal year's earnings.

• Construction order forecast for FY2026 is ¥224,000 million, with strong domestic building construction expected.

• Management targets for "TY2027" remain: ¥45.0bn net sales (¥50.0bn+ with M&A), ¥4.5bn OP, and 11% ROE by FY9/27.