Takamatsu Construction Group (1762) Q4 2025 earnings summary

Executive summary

• Orders received reached a record ¥391.3 billion, up 20.1% year-over-year, led by strong architecture and real estate segments, while civil engineering lagged expectations.

• Net sales hit a record ¥346.7 billion, up 10.9% year-over-year, driven by architecture and real estate, but fell slightly short of initial targets.

• Operating profit declined 1.6% year-over-year to ¥11.4 billion due to lower profitability in large architecture projects and higher costs.

• Profit attributable to owners of parent dropped 29.6% year-over-year to ¥6.4 billion, but dividend payout remained as planned.

• The business environment was challenging due to soaring material and labor costs, despite a solid order environment.

Financial highlights

• Orders received: ¥391.3 billion (+20.1% YoY); Net sales: ¥346.7 billion (+10.9% YoY).

• Gross profit: ¥44.6 billion (+3.7% YoY); Gross profit margin: 12.9% (down 0.9pt YoY).

• Operating profit: ¥11.4 billion (down 1.6% YoY); Operating margin: 3.3% (down 0.4pt YoY).

• Ordinary profit: ¥10.6 billion (down 6.1% YoY); Profit attributable to owners: ¥6.4 billion (down 29.6% YoY).

• Basic earnings per share: ¥185.32 (down from ¥263.25 YoY); dividend per share: ¥82; payout ratio: 44.2%.

Outlook and guidance

• FY2026 forecast: Orders at ¥420 billion (+7.3%), net sales at ¥370 billion (+6.7%), operating profit at ¥15 billion (+30.9%), ordinary profit at ¥14 billion (+31.8%), and profit attributable to owners at ¥7.8 billion (+20.9%).

• Orders and net sales projected to grow in both architecture and civil engineering, with real estate steady in Tokyo despite market uncertainty.

• Dividend for FY2026 planned at ¥90 per share, with a payout ratio target of 40.2%.

• The new mid-term business plan focuses on digital transformation, AI, and group-wide collaboration.