Nankai Tatsumura Construction (1850) Q2 2025 earnings summary

Executive summary

• Achieved record high operating revenue and ordinary income in 1H FY2024, driven by increased passenger numbers, fare revisions, and strong inbound demand, especially in transportation and shopping center segments.

• Operating revenue for the six months ended September 30, 2024, rose 5.0% year-over-year to ¥123,579 million, with operating income up 28.2% to ¥18,256 million and profit attributable to owners of parent up 41.5% to ¥12,550 million.

• Upward revision of full-year forecasts due to continued inbound demand, cost reductions, and robust segment performance.

• Management integration with Semboku Rapid Railway and planned spin-off of the railway business to optimize management and accelerate growth.

• Comprehensive income decreased 23.5% year-over-year to ¥10,323 million, reflecting a decline in other comprehensive income.

Financial highlights

• 1H FY2024 operating revenue: ¥123.6B (+5.0% YoY), operating income: ¥18.3B (+28.2% YoY), ordinary income: ¥19.8B (+49.4% YoY), profit attributable to owners: ¥12.6B (+41.5% YoY).

• Ordinary income increased 49.4% year-over-year to ¥19,822 million.

• Full-year revised forecasts: operating revenue ¥262.4B, operating income ¥32.7B, ordinary income ¥33.0B, profit attributable to owners ¥21.2B.

• Basic earnings per share for the period was ¥110.84, up from ¥78.32 in the prior year.

• Total assets as of September 30, 2024, were ¥925,021 million, with net assets at ¥313,482 million and an equity-to-asset ratio of 32.3%.

Outlook and guidance

• Full-year forecasts revised upward, expecting continued growth in travel, building management, and shopping centers.

• Full-year operating revenue is forecast at ¥262,400 million, up 8.6% year-over-year, with operating income projected at ¥32,700 million (+6.1%) and profit attributable to owners of parent at ¥21,200 million (+11.4%).

• Profit attributable to owners projected to decrease YoY due to absence of prior year’s extraordinary gains from property sales.

• Dividend payout maintained at ¥35 per share.