Kanadevia (7004) investor relations material

Executive summary

• Order intake surged 108% year-over-year to JPY 262.6bn, driven by strong Waste-to-Energy (WtE) EPC and O&M businesses, and a large nuclear-related equipment project.

• Net sales rose 13% year-over-year to JPY 141.7bn for the quarter ended June 30, 2026, with solid performance in the Environment segment both domestically and overseas.

• Operating loss narrowed to JPY 2.4bn from JPY 4.1bn year-over-year, as higher revenue offset project delays and increased SG&A expenses.

• Net income returned to positive territory at JPY 0.1bn, supported by a JPY 4.5bn gain on the sale of a subsidiary.

Financial highlights

• Gross profit margin improved by 1.2 percentage points year-over-year to 16.6%, with gross profit rising to JPY 23.5bn.

• SG&A expenses increased due to higher personnel costs, rising to JPY 25.9bn.

• Extraordinary gain of JPY 4.5bn recognized from the sale of a subsidiary.

• Interest-bearing debt reduced by JPY 46.5bn through cash generated from trade receivables collection.

• Equity ratio improved from 27.4% to 29.0% sequentially.

Outlook and guidance

• Full-year order intake forecast raised by JPY 30.0bn to JPY 840.0bn, reflecting a large nuclear equipment order and favorable order environment.

• FY2027 forecast: net sales JPY 640.0bn (down 0.8% YoY), operating income JPY 25.5bn (up 109.2%), ordinary income JPY 22.0bn (up 61.5%), profit attributable to shareholders JPY 21.0bn (up 88.6%), EPS JPY 124.83.

• Annual dividend forecast raised to JPY 38.0 per share for FY2027.

• Net sales and profit forecasts remain unchanged for the current year, as revenue from the new project will be recognized mainly in future periods.

• Assumed FX rates for FY26: JPY 180/CHF, JPY 145/USD, JPY 95/AUD.