Kandenko (1942) Q1 2025 earnings summary

Executive summary

• Net sales of completed construction contracts rose 8.5% year-over-year to ¥128.9 billion for Q1 FY2024, driven by growth from both general customers and the TEPCO Group.

• Operating profit increased 53.0% year-over-year to ¥10.4 billion, with profit attributable to owners of the parent up 45.6% to ¥7.4 billion.

• Earnings per share for the quarter reached ¥36.12.

Financial highlights

• Gross profit margin improved to 13.6% from 11.1% year-over-year, with gross profit on completed construction contracts increasing from ¥13,143 million to ¥17,479 million.

• Orders received (non-consolidated) grew 14.1% year-over-year to ¥177.6 billion, with net sales up 7.8% to ¥110.4 billion.

• Earnings per share (non-consolidated) increased from ¥22.82 to ¥32.37 year-over-year.

• Comprehensive income decreased to ¥6,053 million from ¥9,151 million year-over-year, mainly due to a decline in other comprehensive income.

• Total assets decreased from ¥567,275 million as of March 31, 2024, to ¥511,671 million as of June 30, 2024.

Outlook and guidance

• FY2024 consolidated net sales forecast is ¥600.0 billion, up 0.3% from FY2023, with operating profit expected at ¥37.0 billion.

• Ordinary profit is projected at ¥38,000 million and profit attributable to owners of parent at ¥24,500 million.

• Earnings per share for the full year is forecast at ¥119.88.

• Non-consolidated net sales forecast for FY2024 is ¥522.0 billion, with operating profit projected at ¥30.7 billion.

• No revisions to previously announced earnings or dividend forecasts.