Takamatsu Construction Group (1762) investor relations material

Executive summary

• Net sales rose 11.8% year-over-year to 88.4 billion yen for the quarter ended June 30, 2026, with operating profit up 173.4% to 5.5 billion yen and profit attributable to owners of parent up 309.4% to 3.2 billion yen, all reaching record highs.

• Orders received declined 6.1% year-over-year to 106.9 billion yen, mainly due to decreases in architecture and real estate, partially offset by civil engineering growth.

• All items except for orders received showed year-over-year increases, with gross profit up 35.2%.

• The Japanese economy showed moderate recovery, but the outlook remains uncertain due to inflation, resource price volatility, and global geopolitical risks.

Financial highlights

• Gross profit increased to 14.9 billion yen (+35.2% YoY); operating profit: 5.5 billion yen (+173.4% YoY); ordinary profit: 5.3 billion yen (+185.0% YoY); basic earnings per share rose to 94.56 yen.

• Comprehensive income reached 3.4 billion yen, up from 369 million yen in the prior year.

• Gross profit margin rose to 16.9% (+2.9pt YoY); operating profit margin increased to 6.2% (+3.7pt YoY).

• Quarterly profit attributable to owners of parent: 3.2 billion yen (+309.4% YoY).

Outlook and guidance

• No change to previously announced full-year forecasts or dividend guidance; current plan does not factor in potential impacts from rising crude oil prices due to Middle East tensions.

• FY ending March 2027 targets: net sales 450 billion yen, operating profit 21 billion yen, profit attributable to owners of parent 15 billion yen.

• Full-year net sales forecast is 400 billion yen, operating profit 20 billion yen, and profit attributable to owners of parent 12.5 billion yen.

• Dividend forecast for FY ending March 2027 is 144 yen per share, with a payout ratio of 40.1%.