Kandenko (1942) Q2 2025 earnings summary

Executive summary

• Net sales rose 9.5% year-over-year to ¥286.7 billion on a consolidated basis for the six months ended September 30, 2024, with significant growth in both general customer and TEPCO Group segments.

• Operating profit increased 61.5% year-over-year to ¥25.4 billion, and profit attributable to owners of the parent grew 55.5% to ¥17.3 billion.

• Orders received (non-consolidated) surged 21.5% year-over-year to ¥361.7 billion, reflecting robust demand across all major construction categories.

• Ordinary profit rose 57.0% to ¥26.1 billion.

• Comprehensive income decreased 8.7% year-over-year to ¥15.6 billion.

Financial highlights

• Gross profit margin on completed construction contracts improved from 10.9% to 13.9% year-over-year, with gross profit rising to ¥39.8 billion.

• Operating profit margin increased from 6.0% to 8.9% year-over-year.

• Earnings per share for the six months was ¥84.47, up from ¥54.33 year-over-year.

• Cash and cash equivalents at period end increased by ¥11.8 billion to ¥85.96 billion.

• Net cash provided by operating activities was ¥46.5 billion, more than doubling year-over-year.

Outlook and guidance

• Full-year consolidated net sales forecast raised to ¥633 billion, up 5.8% year-over-year.

• Operating profit for the full year is projected at ¥43 billion, up 5.0% year-over-year.

• Profit attributable to owners of parent is projected at ¥28.8 billion, up 3.2% year-over-year.

• Full-year earnings per share forecast is ¥140.91.

• Dividend per share forecast for FY2024 is ¥51, with a policy to gradually raise the payout ratio to 40% by FY2026.