Nankai Tatsumura Construction (1850) Q2 2026 earnings summary

Executive summary

• Operating income for FY2025 is projected to reach a record high, driven by EXPO 2025 and increased inbound demand, with all profit stages hitting record levels in the first half.

• Profit attributable to owners of parent rose 12.2% year-over-year in 1H FY2025, and is forecast to be the second highest on record for the full year.

• Operating revenue for the six months ended September 30, 2025, rose 2.4% year-over-year to ¥126,516 million, with operating income up 18.8% to ¥21,683 million and profit attributable to owners of parent up 12.2% to ¥14,084 million.

• Comprehensive income nearly doubled year-over-year, reaching ¥20,441 million, driven by improved valuation differences on securities.

• Active investments are ongoing, but ROE and net interest-bearing debt to EBITDA ratios are expected to remain stable.

Financial highlights

• 1H FY2025 operating revenue: ¥126.5 billion (+2.4% YoY); operating income: ¥21.7 billion (+18.8% YoY); ordinary income: ¥20.7 billion (+4.6% YoY).

• Profit attributable to owners of parent: ¥14.1 billion (+12.2% YoY).

• FY2025 full-year forecasts: operating revenue ¥271.4 billion, operating income ¥38.5 billion, ordinary income ¥35.9 billion, profit attributable to owners of parent ¥22.6 billion.

• EBITDA forecast for FY2025: ¥67.8 billion.

• Basic earnings per share rose to ¥125.55 from ¥110.84 in the prior year period.

Outlook and guidance

• FY2025 operating revenue, operating income, and ordinary income are expected to reach record highs, with profit attributable to owners of parent at the second highest level.

• Full-year operating revenue is forecast to grow 4.1% year-over-year to ¥271,400 million, with operating income expected to rise 11.0% to ¥38,500 million.

• Revenue growth is driven by higher passenger numbers on the airport line and buses, strong shopping center sales, and robust hotel room rates.

• Dividend forecast raised to ¥50 per share, payout ratio 24.4%, with up to ¥12 billion in treasury share buybacks planned.

• Investment plans have been revised downward by ¥3.8 billion due to careful review of construction plans.