Chiyoda (6366) Q4 2025 earnings summary

Executive summary

• Stable earnings and healthy profit margins were achieved through consistent execution of projects in Japan and overseas, with profits at each stage exceeding forecasts for FY2024 and a strong rebound in operating profit and net income after a prior year loss.

• Broad-based revenue growth in the global environmental field during Q4, with significant contributions from ongoing LNG, advanced material, and decarbonization projects, as well as digital transformation and O&M solutions.

• Amended EPC contract for Golden Pass LNG Train 1 improved profitability, recording approximately JPY 3 billion profit in Q3, and project execution continues after a partner withdrawal.

• Major projects in Qatar, Indonesia, and the USA contributed to earnings, though a decrease in revenue and profit is expected due to project completions and transient profit declines.

• New medium-term management plan focuses on decarbonization, advanced materials, life sciences, and expanding non-EPC business, with enhanced customer engagement and marketing.

Financial highlights

• FY2024 revenue was JPY 457.0 billion, down 9.7% year-over-year, with new orders and backlog also declining.

• Gross profit rose to JPY 42.3 billion (9.3% margin), up from JPY 39.5 billion (8.6% margin) year-over-year.

• Operating income increased to JPY 24.4 billion (5.3% margin) from JPY 22.0 billion (4.8% margin) year-over-year, reversing a prior year loss.

• Ordinary income reached JPY 32.2 billion, up from JPY 27.5 billion year-over-year.

• Profit attributable to owners of parent was JPY 27.0 billion, up from JPY 22.0 billion year-over-year.

Outlook and guidance

• FY2025/FY2026 revenue forecast is JPY 370.0 billion, with gross profit of JPY 34.0 billion (9.2% margin), operating income of JPY 16.0 billion, and profit attributable to owners of JPY 15.0 billion.

• New orders expected to reach JPY 250.0 billion in FY2025.

• Focus on stabilizing and diversifying earnings, steady execution of large overseas projects, and expanding non-EPC business.

• New medium-term plan targets average annual net profit of JPY 15 billion and 20% non-EPC profit ratio by FY2027.