Totech (9960) Q3 2025 earnings summary

Executive summary

• Achieved record-high net sales and operating profit in Q3 FY3/25, driven by strong demand in urban redevelopment, carbon neutrality renovations, and data centers.

• Net sales for the nine months ended December 31, 2024, rose 9.2% YoY to ¥110,422 million, with operating profit up 52.1% to ¥10,190 million, ordinary profit up 50.0% to ¥11,037 million, and profit attributable to owners up 56.1% to ¥7,674 million.

• Orders received grew 3.2% YoY and order backlog increased 10.0% YoY, supporting stable growth.

• Comprehensive income increased 24.5% YoY to ¥8,567 million.

• Upward revision to full-year forecasts following robust Q3 performance.

Financial highlights

• Q3 FY3/25 net sales: ¥110.4bn (+9.2% YoY); operating profit: ¥10.1bn (+52.1% YoY); ordinary profit: ¥11.0bn (+50.0% YoY); profit attributable to owners: ¥7.6bn (+56.1% YoY).

• Gross profit rose to ¥29,315 million, up from ¥24,386 million in the prior year period.

• Gross profit margin improved to 26.5% (+2.4ppt YoY); construction business gross margin reached 33.0% (+4.3ppt YoY).

• Basic earnings per share for the period was ¥186.52, reflecting a 3-for-1 stock split effective April 1, 2024.

• Total assets as of December 31, 2024, reached ¥102,903 million, up ¥2,423 million from March 31, 2024.

Outlook and guidance

• Full-year FY3/25 forecast revised upward: net sales ¥155.0bn (+10.1% YoY), operating profit ¥13.0bn (+31.2%), ordinary profit ¥13.8bn (+30.4%), profit attributable to owners ¥9.5bn (+35.6%).

• Basic earnings per share forecasted at ¥230.88 for the full year.

• Dividend forecast revised to ¥93.00 per share (post-split basis) for the year ending March 31, 2025.

• Business environment expected to remain uncertain with higher costs and logistics expenses, but continued focus on sales and profit growth.