Raito Kogyo Co (1926) investor relations material

Executive summary

• Orders received surged 42.3% year-over-year to ¥69,958 million, driven by strong demand in specialized civil engineering and construction fields, with construction contracts carried forward up 25.0% to ¥132,403 million.

• Net sales decreased 3.3% year-over-year to ¥29,522 million, attributed to fewer large-scale projects and delays in project starts.

• Gross profit rose 11.5% to ¥6,672 million, with margin improving by 3.0 points to 22.6%.

• Operating profit increased 19.5% to ¥3,329 million, and profit attributable to owners of parent grew 17.4% to ¥2,295 million.

• Ordinary profit rose 22.7% to ¥3,448 million, reflecting improved construction profitability.

Financial highlights

• Orders received rose by ¥20,798 million year-over-year, driven by large-scale projects.

• Earnings per share for the quarter were ¥55.41, up from ¥44.36 a year earlier.

• Total assets were ¥115,750 million; net assets stood at ¥85,354 million, with an equity ratio of 73.0%.

• Gross profit margin improved to 22.6% from 19.6% year-over-year.

• Net assets per share were ¥2,056.96.

Outlook and guidance

• Full-year net sales forecast at ¥138,000 million, a 0.9% year-over-year increase.

• Operating profit projected at ¥16,850 million (up 2.0%), ordinary profit at ¥17,300 million (up 2.3%), and profit attributable to owners of parent at ¥11,800 million (down 5.5%).

• FY2026 2Q gross profit margin target set at 21.5% (consolidated) and 22.9% (non-consolidated).

• EPS forecast for the full year is ¥70.18, reflecting the impact of a planned 4-for-1 stock split.