Toyo Construction (1890) Q4 2025 earnings summary

Executive summary

• Q2 FY9/25 net sales declined 14.7% YoY to ¥17,376mn, with operating profit down 58.0% to ¥1,396mn, mainly due to fewer large AD/ADAS orders and lower gross margins.

• FY2025 net sales declined 7.6% YoY to 172,605 million yen, but operating profit rose 7.0% to 11,651 million yen and profit attributable to shareholders increased 18.5% to 8,311 million yen.

• Orders and order backlog reached record highs, driven by large projects in Ocean/Defense & Security and strong building construction performance.

• Offshore wind power engineering is a key growth driver, with investments in new technology and vessel construction progressing on schedule.

• ICT/Information Security and Software Quality & Productivity segments showed solid demand, and other core businesses performed in line with plan.

Financial highlights

• Gross profit margin for Q2 FY9/25 fell to 42.4%, down 1.4ppt YoY, impacted by large, low-margin projects.

• Net income attributable to owners of parent dropped 65.2% YoY to ¥858mn.

• Ordinary profit increased 10.1% YoY to 11,071 million yen; comprehensive income was 9,115 million yen, down 4.5%.

• Operating profit margin for Q2 FY9/25 decreased from 16.3% to 8.0% YoY.

• Earnings per share rose to 88.49 yen from 74.51 yen in the prior year.

Outlook and guidance

• Full-year FY9/25 forecast maintained: net sales expected at ¥33,000mn (-5.8% YoY), operating profit at ¥2,400mn (-28.7% YoY), and net income at ¥1,750mn (-30.6% YoY).

• FY2026 consolidated forecasts: net sales of 200,000 million yen (+15.9%), operating profit of 12,000 million yen (+3.0%), profit attributable to shareholders of 8,500 million yen (+2.3%), and EPS of 90.50 yen.

• H2 is expected to see higher sales and profit, with multiple large ViLS-related orders anticipated.

• Medium-term plan "TY2027" targets ¥45bn in sales and ¥4.5bn in operating profit, with robust order growth projected.

• Annual dividend for FY2026 projected at 90 yen per share.