TOA (1885) Q2 2026 earnings summary

Executive summary

• H1 FY2026 consolidated sales, operating profit, ordinary profit and profit attributable to owners of parent reached record highs for the third consecutive interim period.

• Net sales rose 10.0% YoY to ¥164,829m; operating profit increased 18.1% to ¥11,139m and parent-attributable profit rose 15.0% to ¥7,665m.

• Growth reflected stronger domestic civil engineering profitability and higher overseas sales; overseas segment profit was weighed down by a construction-contract loss provision.

Financial highlights

• Ordinary profit rose 20.2% YoY to ¥11,025m; basic EPS was ¥97.56 versus ¥84.06 a year earlier.

• Gross profit increased to ¥18,910m from ¥15,945m; SG&A rose 19.3% to ¥7.7bn.

• Consolidated operating margin was 6.8% versus 6.3% and gross margin was 11.5% versus 10.6% in H1 FY2025.

• Comprehensive income was ¥9,106m, including ¥1,371m of other comprehensive income.

Outlook and guidance

• FY2026 consolidated forecast: net sales ¥342,000m, operating profit ¥21,500m, ordinary profit ¥21,000m and parent-attributable profit ¥15,000m.

• Versus the May forecast, net sales increased ¥7.0bn, operating and ordinary profit each increased ¥3.5bn, and parent-attributable profit increased ¥2.5bn.

• Non-consolidated orders forecast rose ¥35.0bn to ¥265.0bn; net sales forecast increased ¥7.0bn to ¥327.0bn, including overseas sales raised ¥7.0bn to ¥80.0bn.

• Non-consolidated FY2026 forecasts include operating profit of ¥20,400m, ordinary profit of ¥19,800m and profit of ¥14,200m.