Kajima (1812) Q2 2025 earnings summary

Executive summary

• Full-year consolidated net income forecast revised upward to ¥116.0 billion, surpassing last year's result.

• First half consolidated revenues increased slightly, but operating income and net income declined year-over-year due to lower profits at the parent company and overseas subsidiaries.

• Gross margin declined to 9.6% from 10.7% year-over-year, with both construction and real estate segments seeing lower profitability.

• Non-consolidated revenues and income declined, mainly from fewer large-scale building construction projects.

• Comprehensive income decreased 47.4% year-over-year to ¥56.9 billion.

Financial highlights

• 1H FY2024 consolidated revenues: ¥1,321.6B (+¥15.8B YoY); operating income: ¥48.0B (−¥18.3B YoY); net income: ¥35.1B (−¥14.8B YoY).

• Non-consolidated 1H revenues: ¥693.9B (−¥98.9B YoY); net income: ¥44.9B (−¥15.9B YoY).

• Overseas subsidiaries 1H revenues: ¥517.1B (+¥114.5B YoY); net income: ¥1.6B (−¥5.7B YoY).

• Interest-bearing debt increased 42.6% to ¥873.6B as of September 30, 2024.

• Cash and cash equivalents decreased to ¥274.7B from ¥350.1B at the start of the period.

Outlook and guidance

• Full-year consolidated revenue forecast raised to ¥2,800.0B (+¥20.0B from initial); net income: ¥116.0B (+¥11.0B from initial).

• Construction contract awards expected to decline 15.6% to ¥2,470B, with both domestic and overseas segments down.

• Dividend per share forecast at ¥90, with interim and year-end dividends of ¥45 each.

• Overseas real estate sales expected to accelerate in 3Q, but some project sales rescheduled to next fiscal year, leading to lower-than-expected overseas income.

• Full-year contract award forecast revised upward due to strong orders in civil engineering and building construction.