Nankai Tatsumura Construction (1850) Q4 2025 earnings summary

Executive summary

• FY2024 saw record-high operating revenue and ordinary income, driven by increased passenger numbers and a railway fare revision in October 2023.

• Operating revenue rose 7.9% year-over-year to ¥260.8 billion, with operating income up 12.4% to ¥34.7 billion and ordinary income up 21.4% to ¥35.6 billion.

• Profit attributable to owners of parent declined 6.0% year-over-year to ¥22.5 billion, mainly due to the absence of prior-year gains from property sales.

• FY2025 forecasts anticipate higher revenue from new subsidiaries, increased condominium sales, and inbound tourism, but lower operating and ordinary income due to higher costs and reduced non-operating gains.

• Dividend per share is forecast at ¥40.00, unchanged from the previous year.

Financial highlights

• FY2024 operating revenue: ¥260.8 billion (+7.9% YoY); operating income: ¥34.7 billion (+12.4% YoY); ordinary income: ¥35.6 billion (+21.4% YoY); profit attributable to owners of parent: ¥22.5 billion (-6.0% YoY).

• EBITDA reached ¥66.7 billion (+12.1% YoY); investment increased to ¥47.2 billion (+83.2% YoY).

• Comprehensive income dropped 27.8% YoY to ¥25.5 billion.

• Basic earnings per share was ¥198.69, down from ¥211.31 the previous year.

• Equity-to-asset ratio improved to 31.9% from 30.8% YoY.

Outlook and guidance

• FY2025 operating revenue forecast: ¥266.7 billion (+2.3% YoY); operating income: ¥32.6 billion (-5.9% YoY); ordinary income: ¥29.6 billion (-16.8% YoY); profit attributable to owners of parent: ¥18.9 billion (-16.0% YoY).

• Investments planned at ¥127.1 billion, with a focus on real estate and transportation.

• ROE expected to decrease to 6.0% from 7.5%.

• Annual dividend per share is forecast at ¥40.00.