Kraftia (1959) investor relations material

Executive summary

• Net sales declined 1.9% year-over-year due to limited revenue recognition in HVAC and plumbing, despite growth in power distribution and electrical construction, and a high number of large-scale projects in early construction stages.

• Gross profit margin reached a record 19.5%, up from 19.1% in the prior year, driven by higher project margins in electrical and HVAC segments.

• Orders received rose 16.1% year-over-year to ¥146,350 million, supported by redevelopment, data centers, manufacturing demand, and effective cost pass-through.

• Profit attributable to owners of parent grew 9.0% year-over-year to ¥8,415 million.

• Progress continues on the Ukujima Solar Power Project, with key permits and site rights secured, construction milestones advancing, and ongoing efforts to enhance project viability.

Financial highlights

• Q1 FY2027 net sales: ¥98,696 million, down 1.9% year-over-year.

• Gross profit: ¥19,249 million, up 0.1% year-over-year; gross margin at 19.5%.

• Operating profit: ¥10,731 million, down 3.3% year-over-year; ordinary income: ¥12,212 million, up 4.0%.

• Net profit: ¥8,415 million, up 9.0% year-over-year; comprehensive income: ¥9,226 million, up 11.3%.

• Orders on hand: ¥146,350 million, up 16.1% year-over-year.

Outlook and guidance

• FY2027 net sales forecast: ¥500,000 million (+5.0% vs. FY2026).

• Gross profit forecast: ¥91,500 million (+5.1%).

• Operating income forecast: ¥55,500 million (+1.6%).

• Net profit forecast: ¥40,500 million (+1.1%).

• Orders forecast: ¥495,000 million (+3.3%).

• Dividend per share planned at ¥220, with a progressive dividend policy targeting a 40% payout ratio.