TANAKEN (1450) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended September 30, 2024, rose 28.1% year-over-year to ¥5,639.9 million, with operating profit up 106.9% to ¥1,089.3 million and net profit up 107.1% to ¥681.2 million, driven by robust order environment and productivity gains from large projects.

• Achieved year-over-year increases in both revenue and profit for the second quarter, supported by productivity gains from larger projects despite delays in project starts.

• Maintained a strong order backlog and robust financial position, supporting the pursuit of full-year targets.

• The construction sector faced cost pressures from rising material prices and labor shortages, but demand for demolition and redevelopment projects remained strong.

• The company is executing a mid-term plan focused on strengthening its workforce, technology, and alliances to enhance brand value.

Financial highlights

• Revenue for 2Q cumulative: ¥5,639.9 million, up ¥1,238 million year-over-year; progress rate against plan: 43.4%.

• Operating income: ¥1,089.3 million, up ¥563 million year-over-year; margin improved to 19.3%.

• Net income: ¥681.2 million, up ¥353 million year-over-year; progress rate: 61.9%.

• Gross margin rose to 27.1%, up 5.2 points year-over-year.

• Net assets increased by ¥331.4 million from the previous fiscal year-end, mainly due to retained earnings growth.

Outlook and guidance

• Full-year revenue target: ¥13,000 million; operating income: ¥1,600 million; net income: ¥1,100 million.

• Order environment remains favorable, with a focus on expanding new business and redevelopment projects.

• Continued emphasis on hiring and branding to address workforce challenges.

• No change to previously announced earnings guidance; actual results may differ due to various factors.