Fudo Tetra Corporation (1813) Q4 2025 earnings summary

Executive summary

• Achieved year-over-year growth in orders, revenue, and profits, with operating income up 19.6% to ¥3,177 million and net income up 9.6% to ¥2,202 million.

• Progressed on the mid-term plan, surpassing FY2024 operating profit targets and maintaining strong capital efficiency.

• All major segments saw revenue growth, with civil engineering and ground improvement segments driving performance, though block segment declined.

• Continued focus on ESG management, business expansion, and human capital investment.

• The company faced a fraud incident involving inflated or fictitious orders, but the financial impact was minor and corrective measures were implemented.

Financial highlights

• Orders increased 4.5% to ¥72.3B, revenue rose 2.4% to ¥69.6B, and operating profit reached ¥3.18B (up 19.6%).

• Ordinary profit was ¥3.37B (up 14.2%), and net income attributable to shareholders was ¥2.2B (up 9.6%).

• Operating margin improved to 4.6% from 3.9% year-over-year; net margin rose to 3.2%.

• Cash flow from operations dropped sharply to ¥621 million from ¥7,065 million year-over-year, while investing outflows increased to ¥6,500 million.

• EBITDA for FY2024 was ¥5.4B.

Outlook and guidance

• FY2025 guidance: orders ¥74.5B, revenue ¥78.0B, operating profit ¥4.0B, ROE 8%.

• FY2026 guidance projects revenue of ¥78,000 million (+12.1% YoY), operating income of ¥4,000 million (+25.9%), and net income of ¥2,650 million (+20.3%).

• Dividend forecast raised to ¥70 per share for the next fiscal year, with a payout ratio target of ~40%.

• Mid-term plan targets cumulative operating profit of ¥12.0B over three years and ROE of 9% by FY2026.

• Management expects continued steady demand in public construction, but notes ongoing risks from material costs, labor shortages, and macroeconomic uncertainty.