Techno Ryowa Ltd (1965) Q4 2024 earnings summary

Executive summary

• FY2024 revenue rose 20.7% YoY to ¥73.7bn, operating profit rose 82.4% to ¥5.8bn, and net income increased 92.7% to ¥4.5bn; orders grew 12.6% to ¥82.8bn.

• Growth reflected robust domestic construction and equipment investment, with strong industrial-facility work tied to semiconductor, electronic-components, and pharmaceutical projects.

Financial highlights

• FY2024 gross profit was ¥12.7bn, up 33.0%; ordinary profit was ¥6.4bn, up 79.2%, and EPS was ¥209.44, up 95.0%.

• Backlog increased 19.1% YoY to ¥57.4bn; total assets rose ¥12.8bn to ¥76.2bn and net assets rose ¥5.8bn to ¥49.2bn.

• Cash and deposits declined ¥3.3bn to ¥9.9bn, while investment securities rose ¥1.9bn and retirement-benefit assets rose ¥2.8bn, largely reflecting valuation gains.

Outlook and guidance

• FY2025 revenue is forecast at ¥74.5bn, up 1.1%; operating profit ¥5.1bn, down 12.0%; ordinary profit ¥5.37bn, down 15.8%; and net income ¥3.7bn, down 17.9%.

• FY2025 orders are projected to decline 15.5% to ¥70.0bn, reflecting a focus on maintaining construction capacity, safety, and quality.

• Operating-profit pressure reflects higher technician recruitment, work-style reform, DX, and personnel costs; ordinary profit also normalizes excluding prior-year insurance proceeds and FX gains.

• By segment, FY2025 revenue is forecast at ¥43.3bn for industrial facilities, ¥27.5bn for general buildings, and ¥6.6bn for electrical works and cooling-equipment sales.