Kajima (1812) Q3 2025 earnings summary

Executive summary

• Full-year consolidated net income forecast revised upward to 120.0 billion yen; revenues and income expected to increase for the fourth consecutive year.

• Dividend forecast raised by 14 yen to 104 yen per share, marking the fifth consecutive year of dividend increases.

• Revenues for Q3/FY2024 rose 1.6% year-over-year to 2,026.4 billion yen, with operating income down 7.4% to 94.6 billion yen and net income down 2.7% to 74.5 billion yen.

• Comprehensive income dropped 67.1% year-over-year, mainly due to unrealized losses on available-for-sale securities.

• Contract awards declined 7.7% year-over-year, with overseas awards down 19.9%.

Financial highlights

• FY2024 1Q-3Q: Consolidated revenues rose to 2,026.3 billion yen (+31.7 billion yen YoY); net income declined slightly to 74.5 billion yen (-2.0 billion yen YoY).

• Operating income for FY2024 1Q-3Q was 94.6 billion yen, down 7.5 billion yen YoY.

• Full-year consolidated revenues forecast revised up by 70.0 billion yen to 2,870.0 billion yen; net income forecast up by 4.0 billion yen to 120.0 billion yen.

• Gross profit margin decreased to 10.4% from 10.7% YoY; operating margin fell to 4.7% from 5.1%.

• Dividend payout ratio projected at 40.9%; total return ratio at 65.9% including a 30.0 billion yen share buyback.

Outlook and guidance

• Consolidated revenues and income expected to exceed previous forecasts due to improved non-consolidated earnings and strong overseas subsidiary performance.

• Full-year FY2024 consolidated revenue forecast is 2,870 billion yen, up 7.7% YoY; net income forecast at 120 billion yen (+4.3%).

• Contract awards for FY2024 are forecast to decline 14.9% to 2,490 billion yen.

• Overseas real estate development business to benefit from higher gains on property sales and favorable FX translation.

• Dividend forecast revised upward to 104 yen per share for FY2024.