Kitano Construction (1866) Q4 2025 earnings summary

Executive summary

• Revenue decreased by 4.8% year-over-year to ¥80,853 million, with operating profit down 24.2% and net income attributable to shareholders down 13.3%.

• Construction industry faced labor shortages, rising costs, and intensified competition, but hotel business remained resilient.

• Orders received increased 8.9% year-over-year, driven by large-scale construction projects.

Financial highlights

• Operating profit: ¥3,640 million (down 24.2% year-over-year).

• Ordinary profit: ¥4,070 million (down 19.8% year-over-year).

• Net income attributable to shareholders: ¥3,381 million (down 13.3% year-over-year).

• Comprehensive income: ¥4,763 million (down 22.2% year-over-year).

• Cash and equivalents at year-end: ¥18,027 million (down from ¥25,868 million previous year).

Outlook and guidance

• Next fiscal year guidance: revenue ¥83,000 million (+2.7%), operating profit ¥3,600 million (−1.1%), ordinary profit ¥4,000 million (−1.7%), net income ¥2,500 million (−26.1%).

• Focus on workforce investment and DX initiatives, with continued stable dividends planned.