Toyo Construction (1890) Q3 2025 earnings summary

Executive summary

• Financial results for the nine months ended December 31, 2024, progressed in line with revised full-year forecasts, despite net sales and profits declining year-over-year.

• Orders received exceeded initial forecasts, resulting in the highest carry forward balance in 10 years.

• The company is focusing on offshore wind power construction as a growth driver, with resource allocation and vessel construction on schedule.

Financial highlights

• Net sales for the nine months were 1,891 oku yen (116,455 million yen), with operating profit at 116 oku yen (5,748 million yen) and profit attributable to shareholders at 76 oku yen (3,966 million yen).

• Gross profit margin of completed works improved to 13.9% in civil engineering and 10.1% overall in Q3.

• Earnings per share decreased to 42.23 yen from 46.88 yen year-over-year.

• Cash and cash equivalents at period end were 15,858 million yen, down from 20,597 million yen a year earlier.

Outlook and guidance

• Full-year forecasts remain unchanged, with expectations for recovery in overseas and civil engineering segments in Q4.

• FY2025 forecast: net sales of 182,000 million yen, operating profit of 11,600 million yen, and profit attributable to shareholders of 7,600 million yen.

• Dividend forecast for FY2025 is 80 yen per share.

• Orders and carry forward balances are expected to reach 10-year highs, supporting future performance.