E J Holdings (2153) Q4 2024 earnings summary

Executive summary

• FY2024 orders rose 1.3% YoY to ¥38.749bn, while revenue declined 0.8% to ¥37.207bn as major bridge-related projects were delayed into FY2025.

• Operating profit fell 2.3% to ¥4.348bn, ordinary profit fell 0.6% to ¥4.597bn, and net income declined 0.6% to ¥3.032bn.

• Comprehensive income rose to ¥3.476bn from ¥3.041bn in the prior year.

Financial highlights

• Revenue of ¥37.207bn was below the ¥38.3bn plan; orders exceeded plan at ¥38.749bn versus ¥38.3bn.

• Gross profit was ¥12.474bn, down 0.5%; higher SG&A, including new-system running costs, offset an improved cost-of-sales ratio and controlled expenses.

• Total assets increased to ¥41.423bn from ¥39.194bn; net assets rose to ¥32.592bn, with an equity ratio of 78.7%.

• Cash and cash equivalents increased to ¥17.935bn from ¥15.994bn; operating cash flow was ¥3.940bn.

Outlook and guidance

• FY2025 guidance: orders ¥38.5bn, revenue ¥38.5bn, operating profit ¥4.85bn, ordinary profit ¥4.95bn and net income ¥3.35bn.

• Guidance implies YoY growth of 3.5% in revenue, 11.5% in operating profit, 7.7% in ordinary profit and 10.5% in net income; EPS is forecast at ¥213.90.

• Annual dividend per share is forecast to rise to ¥65.

• FY2025 is the final year of the fifth medium-term plan, with targets of ¥38.5bn revenue, ¥4.85bn operating profit and ROE of at least 10%.