Kraftia (1959) Q3 2026 earnings summary

Executive summary

• Sales declined 3.0% year-over-year to ¥319,253 million due to a reactionary drop after significant progress in large-scale solar projects last year, but annual sales are expected to surpass the previous year as large electrical construction projects progress in Q4.

• Gross profit margin improved to 18.9% from 15.5% year-over-year, driven by better profitability in large-scale electrical and HVAC projects.

• Orders received increased 12.0% year-over-year to ¥369,718 million, driven by redevelopment, integrated resort, and data center projects, with effective cost pass-through.

• Operating income rose 23.7% year-over-year to ¥36,444 million, supported by improved gross profit margins.

• The Ukujima solar power plant project is advancing, with ongoing consultations and preparatory work for major construction.

Financial highlights

• 3Q sales: ¥319,253 million, down 3.0% year-over-year; gross profit: ¥60,451 million, up 18.5%.

• Operating profit: ¥36,444 million (+23.7%); ordinary profit: ¥39,083 million (+23.1%); net profit: ¥25,464 million (+22.3%).

• Orders received: ¥369,718 million (+12.0%); works on hand: ¥518,258 million (+10.0%).

• Profit per share: ¥360.01 (up from ¥294.43 year-over-year); comprehensive income: ¥30,817 million (up 46.9%).

• Dividend revised upward to ¥200 per share for the year.

Outlook and guidance

• Full-year sales projected at ¥475,000 million, slightly above last year, but revised down ¥15 billion from previous forecast due to slower progress on large solar projects.

• Gross profit forecast at ¥84,500 million (17.8% margin); operating profit at ¥51,500 million (10.8% margin).

• Net profit forecast at ¥36,000 million; profit per share at ¥508.95; orders expected to reach ¥485,000 million.

• Dividend payout ratio target raised to about 40%, with progressive dividend policy.

• Operating income, ordinary income, and profit attributable to owners of parent revised upward due to improved construction profit margins.