Miyaji Engineering Group (3431) Q2 2026 earnings summary

Executive summary

• Orders received rose 19.4% year-over-year to ¥23,909 million, mainly due to a rebound in the MM BRIDGE segment and the absence of large projects in the prior year.

• Net sales declined 21.6% year-over-year to ¥28,307 million, reflecting fewer large-scale renovation and maintenance projects.

• Operating profit dropped 36.4% year-over-year to ¥2,847 million; ordinary profit fell 35.2% to ¥2,996 million.

• Profit attributable to owners of parent decreased 20.0% year-over-year to ¥1,801 million.

• The business environment was impacted by gradual economic recovery in Japan, U.S. trade policy effects on the automotive sector, and ongoing challenges in new construction.

Financial highlights

• Orders received: ¥23,909 million (up 19.4% year-over-year).

• Net sales: ¥28,307 million (down 21.6% year-over-year).

• Operating profit: ¥2,847 million (down 36.4% year-over-year).

• Ordinary profit: ¥2,996 million (down 35.2% year-over-year).

• Profit attributable to owners of parent: ¥1,801 million (down 20.0% year-over-year).

• Order backlog: ¥108,098 million (up 8.4% year-over-year).

• Basic earnings per share were ¥67.94, reflecting a two-for-one share split.

• Total assets decreased by ¥9,991 million to ¥80,606 million, mainly due to a reduction in cash and deposits.

• Net assets increased by ¥324 million to ¥48,898 million, with retained earnings and valuation gains offsetting a decrease in non-controlling interests.

• Cash and cash equivalents at period end: ¥5,726 million, down ¥10,775 million from March 31, 2025.

Outlook and guidance

• FY2025 net sales forecast unchanged at ¥58,000 million, a 22.4% decrease year-over-year.

• Operating profit forecast revised upward to ¥4,700 million (down 48.7% year-over-year).

• Ordinary profit forecast revised upward to ¥4,800 million (down 49.4% year-over-year).

• Profit attributable to owners of parent forecast revised upward to ¥3,000 million (down 38.2% year-over-year).

• Basic earnings per share forecast for the year is ¥113.13.

• Annual dividend per share maintained at ¥97.5, targeting a total return ratio of 60%.

• The business environment is expected to remain challenging for new construction, but renovation and maintenance demand is projected to gradually recover.