Kitano Construction (1866) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 increased 15.4% year-over-year to ¥18,880 million, with operating profit up 64.1% to ¥739 million and ordinary profit up 1.9% to ¥776 million.

• Net income attributable to shareholders declined 21.5% year-over-year to ¥480 million.

• Construction segment led growth, while hotel and golf segments also saw revenue increases; advertising segment posted a loss.

Financial highlights

• Gross profit rose as sales outpaced cost increases, with gross margin improvement reflected in higher operating profit.

• Comprehensive income dropped 71.5% year-over-year to ¥345 million, mainly due to a decrease in foreign currency translation adjustments.

• Total assets at quarter-end were ¥74,826 million, down ¥762 million from the previous year-end.

• Equity ratio remained strong at 61.9%.

Outlook and guidance

• Full-year revenue forecast is ¥83,000 million, up 2.7% year-over-year, with net income projected at ¥2,500 million, down 26.1%.

• No change to previously announced full-year guidance.

• EPS forecast for the year is ¥103.91, reflecting the impact of a 4-for-1 stock split.