Chiyoda (6366) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 was JPY 117.0B, down 9.6% year-over-year, while operating profit rose 25.8% to JPY 6.4B and profit attributable to owners fell 17.8% to JPY 4.0B.

• Gross profit increased due to ongoing projects and improved risk reassessment, with margin rising to 9.2%.

• Business portfolio transformation continues, with new decarbonization and battery energy storage projects awarded.

• Strategic partnerships established for decarbonization technology and sustainable polyester fiber supply chain.

• New orders declined 29.8% year-over-year to JPY 24.2B, and order backlog decreased 4.4% to JPY 950.6B.

Financial highlights

• Gross profit increased to JPY 10.8B (up JPY 2.4B), with margin improving to 9.2% from 6.5%.

• Operating income rose to JPY 6.4B (up JPY 1.3B), while ordinary income fell to JPY 5.5B (down JPY 1.0B).

• Profit attributable to owners was JPY 4.0B, down JPY 0.9B year-over-year.

• Net assets rose to JPY 10.1B as of June 30, 2024, from JPY 6.1B at the previous fiscal year-end.

• Cash and deposits increased by JPY 5.9B from the previous year-end.

Outlook and guidance

• FY2025 full-year revenue forecast is JPY 450.0B, with gross profit of JPY 33.0B and profit of JPY 15.0B.

• Forecast excludes impact from Zachry's withdrawal from the Golden Pass LNG project; revisions will be disclosed as needed.

• New orders for FY2024 are projected at JPY 250.0B.