Kandenko (1942) Q1 2026 earnings summary

Executive summary

• Net sales of completed construction contracts rose 28.5% year-over-year to ¥165.6 billion for Q1 FY2025, with significant growth from both general customers and the TEPCO Group.

• Operating profit increased 68.8% year-over-year to ¥17.5 billion, and profit attributable to owners of the parent surged 71.4% to ¥12.7 billion.

• Orders received (non-consolidated) grew 24.7% year-over-year to ¥221.5 billion, reflecting robust demand across all major construction categories.

• Comprehensive income jumped 189.3% year-over-year to ¥17.5 billion.

Financial highlights

• Gross profit on completed construction contracts increased 43.7% year-over-year to ¥25.1 billion.

• Selling, general and administrative expenses rose 7.3% year-over-year to ¥7.6 billion, but as a percentage of sales, they declined.

• Earnings per share for the quarter were ¥61.91, compared to ¥36.12 a year earlier.

• Total assets as of June 30, 2025, were ¥578.9 billion, with net assets at ¥386.8 billion.

• Consolidated equity ratio improved to 64.5% at the end of Q1 FY2025 from 61.0% at the end of FY2024.

Outlook and guidance

• Full-year consolidated net sales forecast for FY2025 is ¥703 billion, up 4.6% from the previous year.

• Operating profit is projected to reach ¥63 billion, up 8.0% year-over-year.

• Profit attributable to owners of the parent is forecast at ¥46 billion, up 8.5% year-over-year.

• Full-year earnings per share forecasted at ¥225.05.

• Non-consolidated net sales are expected to rise 4.1% to ¥607 billion, with profit up 11.2% to ¥41.5 billion.