Shimizu (1803) Q2 2026 earnings summary

Executive summary

• Net sales for FY2025 2Q rose to ¥897.0B, up 7.1% year-over-year, with operating income up 119.9% to ¥38.9B and net income attributable to shareholders surging by 332.3% to ¥46.2B.

• Significant gains were driven by higher construction contract orders, improved gross profit margins, and special gains from sales of investment securities.

• Gross profit margin increased to 11.2% from 8.9% year-over-year.

• Comprehensive income reached ¥64.2B, a sharp turnaround from a loss in the prior year period.

Financial highlights

• Operating income margin improved to 4.3% from 2.1% year-over-year, with notable contributions from architectural construction and subsidiaries.

• Net income per share jumped from ¥15.20 to ¥67.93 year-over-year.

• Orders awarded in construction business reached ¥1,215.1B, up ¥471.7B year-over-year.

• Total assets as of September 30, 2025, were ¥2,415.2B, with net assets at ¥920.7B.

• Cash and cash equivalents at period end were ¥334.97B, down from ¥438.14B at the start of the year.

Outlook and guidance

• FY2025 full-year net sales are forecast at ¥1,910.0B, with operating income expected to rise to ¥78.0B and net income attributable to shareholders projected at ¥75.0B.

• Net income per share forecast at ¥110.62.

• Dividend payout ratio is set at 40%, with a minimum dividend of ¥20 per share and a forecast of ¥44.00 per share for the year ending March 31, 2026.