Taisei (1801) Q4 2024 earnings summary

Executive summary

• FY2023 net sales rose 7.4% to ¥1,765.0bn, while operating income fell 51.6% to ¥26.5bn and net income attributable to owners of parent declined 14.5% to ¥40.3bn.

• New orders increased 8.4% to ¥1,962.4bn; year-end order backlog grew 14.4% to ¥3,160.6bn.

Financial highlights

• Gross profit fell to ¥127.4bn from ¥147.8bn; SG&A rose to ¥100.9bn from ¥93.0bn, contributing to lower operating income.

• Ordinary income declined 38.4% to ¥38.9bn; extraordinary income included a ¥17.9bn gain on sale of investments in subsidiaries and associates.

• Comprehensive income rose to ¥146.4bn from ¥36.6bn, supported by ¥105.1bn of other comprehensive income, including securities gains and defined-benefit remeasurements.

Outlook and guidance

• FY2024 forecasts: net sales ¥1,990bn, operating income ¥87bn, ordinary income ¥90bn, net income attributable to owners of parent ¥65bn and EPS ¥355.08.

• FY2024 new orders forecast at ¥1,910bn; sales forecasts are ¥550bn in Civil Engineering, ¥1,300bn in Building Construction and ¥140bn in Real Estate Development and Other.

• FY2026 targets include operating income of ¥120bn, net income of ¥80bn and ROE of ~8.5%.

• FY2024 EPS and ROE forecasts reflect share repurchases; FY2024 net margin and ROE forecasts are 3.3% and 6.9%.