Hazama Ando (1719) Q2 2025 earnings summary

Executive summary

• Achieved consolidated net sales of ¥186.9 billion (+4.0% YoY), operating profit of ¥9.7 billion (+86.0% YoY), and profit attributable to owners of ¥6.6 billion (+78.6% YoY) for the first half of FY3/25.

• Orders received rose 33.3% year-over-year, driven by strong demand in both civil engineering and building construction, especially for large-scale distribution and production facilities.

• Comprehensive income increased 56.7% year-over-year to ¥9,012 million.

• Profitability improved due to higher gross profit margins and reduced selling, general, and administrative expenses.

Financial highlights

• Gross profit margin increased to 11.5% (+1.9p YoY), operating profit margin rose to 5.2% (+2.3p YoY), and ordinary profit grew 68.6% YoY to ¥9,472 million.

• Orders received reached ¥189.9 billion (+33.3% YoY), with building construction orders up 42.9% YoY.

• Backlog as of September 30, 2024, was ¥538.5 billion, with building construction backlog up ¥36.0 billion from March 2024 and up 15.0% YoY.

• Basic earnings per share increased to ¥41.82 from ¥23.43 year-over-year.

• Total assets as of September 30, 2024, were ¥329,931 million, with an equity ratio of 47.8%.

Outlook and guidance

• Full-year consolidated net sales forecast at ¥406.2 billion (+3.1% YoY), operating profit at ¥22.9 billion, and profit attributable to owners at ¥15.2 billion.

• Full-year basic earnings per share forecast is ¥97.00.

• Orders received for the full year projected at ¥375.0 billion, with a focus on high-quality, profitable projects and strategic selection.

• Dividend forecast maintained at ¥60 per share, with a total return ratio target of 70% or more by FY3/26.