Toda (1860) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2024, rose 7.9% year-over-year to ¥380.7 billion, driven by strong performance in architectural construction and civil engineering.

• Operating income increased 54.7% year-over-year to ¥12.0 billion, with gross profit up 20.6% to ¥47.9 billion, despite higher SG&A expenses.

• Net income attributable to owners of the parent surged 112.4% year-over-year to ¥14.0 billion, aided by extraordinary gains from investment securities sales.

• Ordinary income declined 3.1% year-over-year to ¥14.5 billion, impacted by foreign exchange losses.

Financial highlights

• Gross profit margin improved to 12.6% from 11.3% year-over-year.

• Total assets increased to ¥944.1 billion, up 8.3% from March 31, 2024.

• Net assets decreased by ¥8.3 billion to ¥347.1 billion, with a capital adequacy ratio of 35.6%.

• Basic earnings per share rose to ¥46.59 from ¥21.38 year-over-year.

Outlook and guidance

• Full-year consolidated net sales forecast revised to ¥580.0 billion (up 11.0% year-over-year), with operating profit projected at ¥20.0 billion and net income at ¥18.4 billion.

• Forecasts were revised downward from previous guidance due to slower progress in certain construction projects and lower-than-expected interest income.

• Dividend forecast for the year is ¥29.00 per share.