Chiyoda (6366) Q2 2025 earnings summary

Executive summary

• Income and profits increased year-over-year, with operating profit up 27.2% to JPY 13,730 million and profit attributable to owners up 64.0% to JPY 14,161 million, driven by strong project execution and milestone revenue from the Tangguh LNG Expansion in Indonesia.

• Revenue for the six months ended September 30, 2024, was JPY 237,342 million, down 12.6% year-over-year.

• New orders declined 48.7% year-over-year to JPY 69,160 million, and order backlog decreased 19.5% to JPY 799,621 million.

• The company is actively engaged in LNG, decarbonization, hydrogen, ammonia, CCS/CCU, and digital transformation projects, with significant progress in both domestic and international markets.

• Site construction for Golden Pass LNG in the USA resumed in August after Zachry's withdrawal, with CB&I taking over construction operations.

Financial highlights

• Operating income increased to JPY 13,730 million (up 27.2%), ordinary income to JPY 17,312 million (up 22.6%), and profit attributable to owners to JPY 14,161 million (up 64.0%).

• Revenue for FY2024 2Q was JPY 237,342 million, down JPY 34,400 million year-over-year; gross profit rose to JPY 22,366 million, up JPY 4,649 million.

• Gross profit margin improved to 9.4% from 6.5% year-over-year.

• Net income per share was JPY 50.60, up from JPY 29.28 a year earlier.

• Cash and cash equivalents increased by JPY 26,520 million to JPY 192,729 million as of September 30, 2024.

Outlook and guidance

• Full-year revenue forecast is JPY 450,000 million, with 53% progress as of 2Q; operating income forecast is JPY 17,000 million and net income JPY 15,000 million.

• Full-year consolidated forecasts maintained despite strong profit progress, due to transient profit elements and pending Golden Pass LNG contract finalization.

• No change in previously announced forecasts; guidance does not include new execution plans post-Zachry withdrawal from the Golden Pass LNG project.

• Anticipated new domestic decarbonization business awards in the second half of the fiscal year.