Takamatsu Construction Group (1762) Q2 2026 earnings summary

Executive summary

• Achieved strong growth in profitability for 2Q FY ending March 2026, with operating profit and ordinary profit both more than tripling year-over-year, driven by improved margins and cost control.

• Net sales for the six months ended September 30, 2025, rose 5.4% year-over-year to ¥170,912 million, with profit attributable to owners of parent up 746.0% to ¥4,493 million.

• Orders received declined 1.9% year-over-year to ¥189,147 million, reflecting intra-group eliminations and a mixed market environment.

• Strategic transfer of the condominium development business to Takamatsu Development impacted intra-group transactions and consolidated figures.

Financial highlights

• Gross profit increased to ¥25.8 billion, up 35.0% YoY; gross profit margin rose to 15.1% (+3.3pt YoY).

• Operating profit: ¥7.9 billion, up 204.4% YoY; operating margin improved to 4.6% (+3.0pt YoY).

• Profit attributable to owners of parent: ¥4.4 billion, up 746.0% YoY; basic EPS rose to ¥129.06.

• Total assets increased to ¥284,961 million; net assets rose to ¥140,277 million, with a shareholders' equity ratio of 49.2%.

Outlook and guidance

• Full-year forecasts maintained for consolidated totals, with upward revisions for Takamatsu Corporation and downward for Toko Geotech.

• Full-year net sales forecast at ¥370,000 million (up 6.7% YoY), operating profit at ¥15,000 million (up 30.9%), and profit attributable to owners of parent at ¥7,800 million (up 20.9%).

• Dividend forecast set at ¥90 per share, with a payout ratio of 40.2%, reflecting a progressive dividend policy.