Chiyoda (6366) Q1 2026 earnings summary

Executive summary

• Profit increased year-over-year, with ongoing domestic and international projects progressing as planned, supporting a positive outlook for the full-year forecast.

• New orders surged 449.3% year-over-year to JPY 132,789 million, driven by major EPC wins in the Middle East and domestic projects in advanced materials and pharmaceuticals.

• Net sales declined 22.7% year-over-year to JPY 90,457 million, reflecting the completion of a large copper smelting project in Indonesia.

• Operating profit fell 20.3% year-over-year to JPY 5,109 million, while ordinary profit rose 28.3% to JPY 7,035 million due to improved foreign exchange gains.

• Profit attributable to owners of parent increased 58.6% year-over-year to JPY 6,372 million.

Financial highlights

• Revenue for FY2025 1Q was ¥90.5B, down ¥26.6B year-over-year; gross profit was ¥9.4B, down ¥1.4B.

• Gross profit margin improved to 10.4% (up 1.1pt), and operating income margin rose to 5.6% (up 0.2pt) year-over-year.

• Net income per share was JPY 22.57, up from JPY 13.48 in the prior year.

• Net assets increased to JPY 31,696 million, up from JPY 25,456 million at the previous fiscal year-end.

• Order backlog increased 4.2% year-over-year to JPY 770,582 million.

Outlook and guidance

• Full-year revenue forecast is ¥370.0B, with 1Q progress at 24%; profit forecast is ¥15.0B, with 1Q progress at 42%.

• Full-year forecast for fiscal year ending March 31, 2026: net sales of JPY 370,000 million (up 19.0% YoY), operating income of JPY 16,000 million (up 34.5% YoY), ordinary income of JPY 19,000 million (up 41.0% YoY), and profit attributable to owners of parent of JPY 15,000 million (up 44.4% YoY).

• No change to previously announced forecasts.

• Ongoing review of profitability for the Golden Pass LNG project in the USA, with contract amendments expected to be finalized.