Toyo Construction (1890) Q2 2026 earnings summary

Executive summary

• Net sales for FY9/25 declined 7.1% year-over-year to ¥32,559mn, mainly due to delayed large orders in Advanced Mobility and lower Sustainable Energy sales, while ICT/Information Security and Ocean/Defense & Security grew on strong demand.

• Operating profit dropped 43.1% year-over-year to ¥1,914mn, impacted by lower sales and increased R&D and personnel expenses, but exceeded revised guidance due to a late large overseas order booking.

• Net sales rose 28.5% year-over-year to ¥94,590 million for the six months ended September 30, 2025, with operating profit up 28.7% to ¥3,568 million and net profit attributable to owners up 34.8% to ¥2,489 million.

• The company became a consolidated subsidiary of TAISEI CORPORATION following a successful tender offer, with plans for delisting and share consolidation by December 2025.

Financial highlights

• Gross profit margin improved by 0.3ppt year-over-year to 43.6% for the full year.

• Profit attributable to owners of parent fell 52.6% year-over-year to ¥1,195mn.

• Ordinary profit increased 22.1% year-over-year to ¥2,967 million.

• Comprehensive income nearly doubled to ¥2,148 million from ¥1,101 million a year earlier.

• Total assets at year-end were ¥39,937mn, with increases in cash and deposits and short-term borrowings.

• Total assets decreased to ¥173,650 million, and equity ratio slightly declined to 42.4%.

Outlook and guidance

• FY9/26 forecast projects net sales of ¥39,000mn (+19.8% YoY), operating profit of ¥3,600mn (+88.0% YoY), and profit attributable to owners of parent of ¥2,600mn (+117.5% YoY), driven by record-high orders and backlog.

• Management targets for FY9/27 include sales of ¥45.0bn+α, operating profit of ¥4.5bn, and ROE of 11%.

• Full-year net sales forecast at ¥200,000 million, operating profit at ¥12,000 million, and net profit attributable to owners at ¥8,500 million, with no change from previous guidance.

• Construction order forecasts remain unchanged, with a slight decrease expected in total orders received.