CREEK & RIVER (4763) Q3 2025 earnings summary

Executive summary

• Q3 FY02/25 sales reached ¥38,102 million, up 1% year-over-year, but operating profit declined 14% to ¥2,986 million due to project reductions and longer contract times in key segments.

• Ordinary profit fell 13.2% to ¥3,059 million, and profit attributable to owners of parent decreased 10.8% to ¥2,031 million.

• Earnings per share for the period were ¥94.87, down from ¥103.35 in the prior year.

• Profitability improved sequentially since Q2, but full-year forecasts were revised downward due to limited contribution from new projects this fiscal year.

Financial highlights

• Sales: ¥38,102 million (101% YoY); Gross profit: ¥14,249 million (99% YoY); Operating profit: ¥2,986 million (86% YoY); Ordinary profit: ¥3,059 million (87% YoY); Net profit: ¥2,031 million (89% YoY).

• Gross margin: 37.4% (down from 38.0% YoY); Operating margin: 7.8% (down from 9.2% YoY).

• SG&A expenses increased 3% YoY to ¥11,263 million.

• Comprehensive income attributable to owners of parent was ¥1,991 million, down from ¥2,315 million YoY.

• Total assets increased to ¥27,008 million as of November 30, 2024, from ¥25,418 million as of February 29, 2024.

Outlook and guidance

• Full-year sales forecast revised to ¥50,500 million (down ¥4,500 million from previous), operating profit to ¥3,850 million (down ¥950 million), and net profit to ¥2,500 million (down ¥600 million).

• Ordinary profit is expected to decrease 5.7% to ¥3,900 million, and full-year earnings per share are projected at ¥116.73.

• Dividend forecast revised from ¥43 to ¥41 per share, maintaining a 30% payout ratio.