Taisei (1801) investor relations material

Executive summary

• Q1 net sales reached ¥521.2 billion, up 18.4% year-over-year, driven by strong building construction, real estate development, and the consolidation of Toyo Construction, achieving 21.5% of the full-year forecast.

• Gross profit increased 26.2% year-over-year to ¥85.5 billion, mainly from improved profitability in building construction and real estate development.

• Operating income grew 15.3% year-over-year to ¥45.3 billion, while net income attributable to owners rose 4.8% to ¥30.9 billion.

• Comprehensive income declined to ¥16.4 billion from ¥33.0 billion a year earlier, mainly due to negative other comprehensive income.

• New orders declined 24.5% year-over-year due to the absence of large-scale domestic building construction orders from the prior year.

Financial highlights

• Q1 consolidated net sales: ¥521.2 billion (up 18.4% YoY); gross profit: ¥85.5 billion (up 26.2% YoY); operating income: ¥45.3 billion (up 15.3% YoY); net income attributable to owners: ¥30.9 billion (up 4.8% YoY).

• Ordinary income: ¥45.9 billion, up 11.5% year-over-year.

• Net income per share: ¥189.62, compared to ¥173.42 in the prior year.

• Gross profit margin: 18.8% for civil engineering (down 7.6 pts YoY), 14.3% for building construction (up 5.2 pts YoY).

• SG&A expenses rose 41.2% YoY, reflecting increased human capital investment and Toyo Construction consolidation.

Outlook and guidance

• Full-year net sales forecast: ¥2,420.0 billion, up 15.8% YoY; net income forecast: ¥151.0 billion, down 11.2% YoY.

• Operating income expected to remain flat YoY as higher gross profit offsets increased SG&A expenses.

• Dividend forecast for FY2026: ¥380 per share, up from ¥310 in FY2025.

• Non-operating income/expenses and extraordinary gains/losses are expected to deteriorate due to higher interest expenses and lower gains on shareholdings sales.

• No changes to the previously announced full-year forecast.