Taikisha (1979) Q3 2025 earnings summary

Executive summary

• Orders received for FY2024 are expected to decrease from original forecasts due to a large Green Technology project delay, but Paint Finishing orders are outperforming expectations.

• Sales for the nine months ended December 31, 2024, declined 10.0% year-over-year to ¥184,766 million, with operating income down 18.1% to ¥9,926 million and profit attributable to owners of parent down 20.0% to ¥8,186 million.

• Comprehensive income dropped significantly to ¥7,672 million from ¥16,525 million year-over-year.

• Sales and profit are projected to exceed original forecasts, with upward revisions announced in February 2025.

Financial highlights

• 1-3Q FY2024 orders received: ¥209.1bn, up 12.8% QoQ; sales: ¥184.7bn, down 10.0% QoQ.

• Ordinary income for 1-3Q FY2024: ¥11.4bn, down 14.1% YoY; profit attributable to owners: ¥8.1bn, down 20.0% YoY.

• Gross profit margin for 1-3Q FY2024: 15.1%; operating income margin: 5.4%; ordinary income margin: 6.2%.

• EPS for 1-3Q FY2024: ¥251.32, down from ¥308.68 YoY.

• Total assets as of December 31, 2024, were ¥259,548 million, with an equity capital ratio of 55.5%.

Outlook and guidance

• FY2024 revised forecasts: orders received ¥267.0bn, net sales ¥269.0bn, operating income ¥15.7bn, ordinary income ¥18.0bn, profit attributable to owners ¥12.3bn.

• EPS for the full year projected at ¥377.63.

• Dividend for FY2024 to be increased to ¥144 per share, targeting a DOE of 3.2% and payout ratio of 40%.

• Treasury share buybacks of approximately ¥2bn per year planned under the Mid-Term Business Plan.