Kraftia (1959) Q2 2025 earnings summary

Executive summary

• Sales for the March 2025 2nd quarter rose 9.3% year-over-year to ¥219,303 million, driven by progress in large construction projects and a record-high contract balance.

• Operating profit increased 33.3% year-over-year to ¥18,254 million, reflecting improved construction profitability.

• Net profit attributable to owners of parent rose 29.6% year-over-year to ¥13,168 million.

• Orders received declined 7% year-over-year to ¥227,881 million, but annual order volume is expected to match the previous year.

• The Ukujima solar project is progressing, with ongoing stakeholder engagement and permit applications.

Financial highlights

• Operating profit increased by ¥4,562 million year-over-year, driven by higher sales and improved profit margins.

• Net profit per share rose from ¥143.49 to ¥186.18 year-over-year.

• Free cash flow turned negative at -¥5,692 million, compared to ¥34,756 million in the previous period, mainly due to increased investment and reduced operating cash flow.

• Total assets decreased to ¥465,292 million from ¥503,284 million at the end of March 2024.

• Net assets increased by ¥8,593 million (3.0%) to ¥299,719 million, with an equity ratio of 63.9%.

Outlook and guidance

• Full-year sales are projected at ¥500,000 million, up 6.6% year-over-year, with operating profit targeted at ¥39,500 million.

• Net profit forecast for the year is ¥29,000 million, with a planned annual dividend of ¥130 per share.

• Orders for the full year are expected to reach ¥452,000 million.

• No changes have been made to the previously announced earnings forecast.