Chiyoda (6366) Q3 2025 earnings summary

Executive summary

• Achieved higher income and profits year-over-year, with operating profit up 11.2% to JPY 19,815 million and profit attributable to owners up 33.2% to JPY 20,906 million, driven by strong execution of domestic and overseas projects and additional revenue from the amended EPC contract for Golden Pass LNG Train 1.

• Net sales for the nine months ended December 31, 2024, were JPY 346,053 million, down 12.9% year-over-year, with new orders and backlog also declining.

• Upward revision of full-year forecasts due to steady monetization of ongoing projects and extra revenues from a completed overseas project in H1.

• The business environment is shaped by global economic recovery, ongoing geopolitical risks, and increased demand for LNG and decarbonization solutions.

Financial highlights

• Revenue for FY2024 3Q was JPY 346.1B, down JPY 51.4B year-over-year, but gross profit rose to JPY 32.8B (+JPY 4.2B), and operating income increased to JPY 19.8B (+JPY 2.0B).

• Ordinary profit increased 6.0% year-over-year to JPY 25,058 million, and comprehensive income surged to JPY 20,963 million from JPY 9,964 million.

• Net assets rose to JPY 27,061 million as of December 31, 2024, from JPY 6,077 million at the previous fiscal year-end.

• Cash and deposits increased by JPY 58.6B to JPY 160.7B, supporting improved liquidity.

Outlook and guidance

• Full-year revenue forecast revised upward to JPY 460.0B, with 3Q progress at 75%.

• Operating income and profit forecasts for the full year are JPY 22.0B each, with 3Q progress at 90% and 95% respectively.

• EPS forecast is JPY 76.80.

• Forecasts reflect the impact of the amended EPC contract for Train 1 of the Golden Pass LNG project, but not for Trains 2 and 3, pending further negotiations.