Hibiya Engineering (1982) Q4 2025 earnings summary

Executive summary

• FY3/25 net sales rose 7.2% YoY to ¥89,786m; operating profit increased 30.0% to ¥7,456m and parent-attributable profit grew 23.0% to ¥5,906m.

• Results exceeded initial profit forecasts; sales missed the ¥91,000m forecast amid delays in some large projects, while orders of ¥93,655m exceeded the ¥88,500m forecast.

• Strong data-center demand and improved project profitability supported earnings and kept carried-over projects at ¥85.6bn, up from ¥81.7bn in FY3/24.

Financial highlights

• Gross profit rose to ¥17,266m from ¥14,903m; gross margin improved to 19.2% from 17.8%, while SG&A increased to ¥9,809m from ¥9,165m.

• Ordinary profit increased 26.2% to ¥8,138m; parent-attributable profit reached ¥5,906m, including ¥596m gain on investment securities sales.

• Total assets increased ¥1,689m to ¥99,915m; net assets rose ¥1,769m to ¥71,684m and the equity ratio improved to 70.6% from 70.0%.

• Cash and cash equivalents fell ¥6,177m to ¥22,778m; operating, investing and financing cash flows were outflows of ¥616m, ¥1,795m and ¥3,765m.

Outlook and guidance

• FY3/26 targets include orders of ¥95.5bn, net sales of ¥93.5bn, operating profit of ¥7.8bn and parent-attributable profit of ¥6,000m; EPS forecast is ¥272.51.

• FY3/26 ordinary profit forecast is ¥8,400m; ROE is forecast at 8.4%, or 8.1% excluding estimated stock-sale profit of ¥390m.

• Guidance was raised from the 8th Medium-term Management Plan; priorities include data-center and redevelopment/renovation demand and better project profitability.

• Forecasts assume moderate economic recovery and strong construction investment; completion schedules, cost increases and global and market uncertainty may affect results.