Fukuda (1899) Q4 2024 earnings summary

Executive summary

• Revenue for FY2024 increased 2.7% year-over-year to ¥166.6 billion, driven by steady construction progress and large-scale real estate sales.

• Operating profit surged 47.3% year-over-year to ¥7.7 billion, mainly due to higher gross profit in real estate and improved profitability in key subsidiaries.

• Net income attributable to shareholders rose 56.8% year-over-year to ¥5.3 billion.

• Ordinary profit increased 45.2% to ¥7,957 million.

Financial highlights

• Gross profit margin improved to 10.7% from 9.2% year-over-year, with gross profit rising from ¥14,961 million to ¥17,824 million.

• Operating margin rose to 4.6% from 3.2% year-over-year.

• Equity ratio increased to 59.3% from 58.2% year-over-year.

• Cash and equivalents at year-end increased by ¥3.4 billion to ¥32.8 billion.

• Total assets rose to ¥142,814 million from ¥136,731 million, and net assets increased to ¥85,407 million.

Outlook and guidance

• FY2025 revenue is projected at ¥167.0 billion, nearly flat year-over-year.

• Operating profit is expected to decline 21.7% to ¥6.0 billion due to the absence of large real estate projects and lower subsidiary profitability.

• Net income forecasted to decrease 19.0% to ¥4.3 billion.

• Earnings per share projected at ¥519.49 for FY2025.

• Targeting ¥1 trillion in orders for both civil engineering and building segments.