Raito Kogyo Co (1926) Q1 2026 earnings summary

Executive summary

• Orders received increased 3.9% year-over-year to ¥49,160 million, driven by strong demand in slope stabilization, protection, and foundation work, with notable contributions from subsidiaries in the U.S. and O-NO-RYO, despite a decline in large-scale condominium projects.

• Net sales rose 20.1% year-over-year to ¥30,520 million, reflecting robust execution of major construction projects domestically and overseas.

• Profit attributable to owners of parent grew 29.4% year-over-year to ¥1,955 million.

• Operating profit increased 32.7% year-over-year to ¥2,785 million.

Financial highlights

• Gross profit reached ¥5,983 million, up 15.9% year-over-year, with gross profit margin slightly decreasing to 19.6% from 20.3% in the prior year.

• Ordinary profit was ¥2,809 million, up 25.7% year-over-year.

• Earnings per share increased to ¥44.36 from ¥31.70 in the prior year period.

• Comprehensive income declined 22.9% year-over-year to ¥1,716 million, mainly due to negative foreign currency translation adjustments.

• Construction contracts carried forward rose 7.6% year-over-year to ¥105,904 million.

Outlook and guidance

• FY2025 2Q gross profit margin target set at 20.9% (consolidated) and 22.2% (non-consolidated).

• Full-year net sales forecast at ¥127,500 million (up 5.0% year-over-year), with operating profit projected at ¥13,700 million (up 6.9%).

• Profit attributable to owners of parent expected to reach ¥9,500 million (down 4.2% year-over-year), with EPS forecast at ¥213.36.

• No revisions to previously announced earnings or dividend forecasts.