Kajima (1812) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue was ¥1,333.9bn, down 2.8% YoY; operating income was ¥101.8bn, ordinary income ¥101.1bn, and net income attributable to owners ¥71.3bn, down 7.7%.

• Gross profit rose 3.9% to ¥194.2bn, while SG&A increased 18.1% to ¥92.4bn, contributing to lower operating income.

Financial highlights

• Construction revenue fell 6.3% to ¥1,181.5bn, while real estate and other revenue rose 36.1% to ¥152.3bn.

• Consolidated construction contract awards were ¥1,173.4bn, down 1.4% YoY; non-consolidated awards were ¥811.6bn, down 4.4%.

• Operating cash flow was positive ¥26.6bn versus negative ¥6.2bn a year earlier; investing cash outflow narrowed to ¥11.7bn from ¥36.8bn.

• Extraordinary income included a ¥9.9bn gain on sales of investment securities; comprehensive income was ¥68.0bn versus ¥84.4bn a year earlier.

Outlook and guidance

• FY2027 forecast: revenue ¥2,900bn, operating income ¥234bn, ordinary income ¥225bn, net income attributable to owners ¥170bn, and basic EPS ¥368.75.

• Operating and ordinary income forecasts rose from ¥200bn and ¥206bn, respectively; revenue and net income forecasts were unchanged.

• Forecast consolidated contract awards are ¥2,670bn, down 18.2% YoY; domestic awards are ¥1,810bn and overseas awards ¥860bn.

• Non-consolidated full-year construction gross margin forecasts rose to 23.4% for civil engineering and 13.5% for building construction; combined construction margin is 16.5%.

• Overseas revenue forecast fell ¥50.0bn to ¥1,000.0bn and overseas net income forecast fell ¥11.0bn to ¥7.0bn, mainly due to revised property-sale plans.