Hibiya Engineering (1982) Q4 2024 earnings summary

Executive summary

• FY2024 orders rose 20.8% YoY to ¥105,560 million, driven by large data-center and redevelopment projects; net sales fell 0.3% to ¥83,762 million as project delays deferred revenue.

• Operating profit declined 3.6% to ¥5,737 million and ordinary profit fell 2.6% to ¥6,446 million; parent-attributable profit rose 3.4% to ¥4,800 million.

Financial highlights

• Net sales were ¥83,762 million versus ¥83,978 million; gross profit was ¥14,903 million versus ¥15,132 million.

• Operating profit was ¥5,737 million versus ¥5,953 million; ordinary profit was ¥6,446 million versus ¥6,617 million.

• Parent-attributable profit was ¥4,800 million versus ¥4,644 million; EPS was ¥211.06 versus ¥200.48.

• Gross margin was 17.8%, down from 18.0%, as construction streamlining partly offset higher equipment and material costs and fewer large high-margin projects.

• Comprehensive income rose to ¥8,304 million from ¥4,644 million, including a ¥3,454 million gain in valuation differences on available-for-sale securities.

Outlook and guidance

• FY2025 guidance: orders ¥88.5bn, net sales ¥91.0bn, operating profit ¥5.9bn, ordinary profit ¥6.6bn and parent-attributable profit ¥4.6bn.

• Strategy targets data-center demand and carbon-neutrality businesses, with productivity improvements and measures to address labor shortages.

• Eighth Medium-term Management Plan FY2026 targets: orders ¥91.0bn, net sales ¥90.5bn, operating profit ¥6.5bn and parent-attributable profit ¥4.8bn.