Shimizu (1803) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2024 were ¥837.3B–¥837.4B, down 10.6% year-over-year, with operating income at ¥17.7B, a significant increase from the prior year.

• Net income attributable to shareholders was ¥10.6B–¥10.7B, a decrease from the previous year.

• Orders received in the first half fell 40.5% year-over-year, mainly due to a sharp decline in domestic architectural construction orders.

• The company accelerated its securities holdings reduction target to less than 20% of consolidated net assets by FY2025.

• Dividend and earnings forecasts were revised upward in November 2024.

Financial highlights

• Gross profit margin for the first half improved to 8.9% from 5.6% year-over-year.

• Operating income rose to ¥17.7B from ¥0.1B–¥165M in the prior year.

• Net income attributable to shareholders was ¥10.6B–¥10.7B, down from ¥16.2B in the previous year.

• Total assets at the end of the first half were ¥2,387.7B–¥2,538.7B, with net assets at ¥948.0B.

• Interest-bearing debt decreased to ¥574.7B–¥574.8B from ¥603.1B–¥603.2B at year-end.

Outlook and guidance

• FY2024 consolidated net sales forecast is ¥1,860.0B, with operating income projected at ¥56.0B and net income at ¥60.0B.

• Operating income and ordinary income forecasts were raised, reflecting improved profitability.

• Dividend forecast raised to ¥35–¥40 per share for FY2024.

• The company targets a consolidated gross profit margin of 9.6% for FY2024.

• Orders forecast for FY2025 revised upward to ¥1,320B, but still down 28.7% from the previous year.