Kandenko (1942) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2024, rose 12.9% year-over-year to ¥455.5 billion, with strong contributions from both general customers and the TEPCO Group.

• Operating profit increased 68.2% year-over-year to ¥41.9 billion, and profit attributable to owners of the parent grew 59.1% to ¥31.9 billion.

• Orders received (non-consolidated) surged 18.2% year-over-year to ¥512.3 billion, reflecting robust demand across all major construction categories.

• Comprehensive income for the period was ¥28.5 billion, up 3.5% year-over-year.

Financial highlights

• Gross profit margin improved from 11.2% to 14.1% year-over-year, with gross profit on completed construction contracts rising from ¥45.1 billion to ¥64.1 billion.

• Ordinary profit rose 65.1% year-over-year to ¥43.3 billion.

• Non-consolidated profit nearly doubled, up 94.0% year-over-year to ¥28.9 billion, with EPS rising from ¥72.93 to ¥141.44.

• Earnings per share for the nine months was ¥156.06, up from ¥98.10 year-over-year.

• Total assets as of December 31, 2024, were ¥560.5 billion, with net assets at ¥364.0 billion.

Outlook and guidance

• Full-year consolidated net sales forecasted at ¥666.0 billion, up 11.3% from the previous year.

• Operating profit projected to reach ¥57.0 billion (up 39.2%), and profit attributable to owners of the parent to ¥41.7 billion (up 52.5%).

• Earnings per share for the full year is expected to be ¥204.02.

• Dividend forecast revised to ¥82.00 per share for the year, including a commemorative dividend.

• Non-consolidated orders received expected to grow 11.1% year-over-year to ¥636.0 billion.