INFRONEER Holdings (5076) Q3 2024 earnings summary

Executive summary

• Nine-month net sales rose 13.2% YoY to ¥561.4bn and operating profit increased 38.0% to ¥34.3bn, led by civil and road civil engineering.

• Building construction and infrastructure management recorded segment losses; FY2024 forecasts were unchanged, with Japanese GAAP and IFRS outlooks presented.

Financial highlights

• Net sales increased ¥65.5bn YoY to ¥561.4bn; gross profit rose to ¥81.8bn from ¥66.6bn.

• Operating profit rose 38.0% to ¥34.3bn, ordinary profit 38.1% to ¥35.8bn, and parent-attributable profit 2.9% to ¥24.1bn.

• Comprehensive income was ¥39.7bn versus ¥17.9bn, including ¥15.2bn of other comprehensive income; extraordinary income included an ¥8.1bn gain on investment-security sales.

• Nine-month JGAAP operating margin was 6.1%, versus 5.0% a year earlier; EPS was ¥96.24 versus ¥89.92.

Outlook and guidance

• FY2024 JGAAP forecast was unchanged: sales ¥762.9bn, operating profit ¥41.3bn, ordinary profit ¥42.5bn, parent-attributable profit ¥27.5bn and EPS ¥109.59.

• FY2024 IFRS forecast: sales ¥768.2bn, business profit ¥48.1bn, operating profit ¥48.0bn, parent-attributable profit ¥31.7bn and EPS ¥126.33.

• Nine-month progress against the JGAAP forecast was 73.6% for sales, 83.0% for operating profit, 84.2% for ordinary profit and 87.8% for parent-attributable profit.

• Building Construction expected FY23 orders of ¥280bn and a 7% order margin; Civil Engineering expected to maintain high order margins and meet plan.

• Road Civil Engineering expected to meet its plan by prioritizing construction gross margins and appropriate selling prices; Machinery raised its full-year plan.