Kajima (1812) investor relations material

Executive summary

• First-quarter income increased, driven by higher margins in nonconsolidated construction and property sales in overseas real estate development, despite lower consolidated revenues year-over-year.

• Revenues for the three months ended June 30, 2026, were ¥640.1 billion, down 1.5% year-over-year, with operating income up 7.8% to ¥40.5 billion and net income attributable to owners of the parent rising 16.6% to ¥30.9 billion.

• Gross profit margin improved to 13.3% from 11.7% year-over-year, driven by strong performance in real estate and other segments.

• Comprehensive income increased 58.4% year-over-year to ¥28.3 billion.

• Construction demand remained steady in Japan and overseas, with rigorous risk management maintained amid an unstable international environment.

Financial highlights

• Consolidated revenues fell to ¥640.0B (down ¥9.5B YoY), but operating income rose to ¥40.5B (up ¥2.9B YoY) and net income attributable to owners increased to ¥30.9B (up ¥4.4B YoY).

• Operating income rose to ¥40.5 billion (up 7.8% year-over-year), and ordinary income increased 14.4% to ¥44.4 billion.

• Basic net income per share was ¥66.57, compared to ¥56.46 in the prior year.

• Total assets decreased to ¥3,384.5 billion as of June 30, 2026, from ¥3,624.3 billion at March 31, 2026.

• Owners' equity ratio improved to 40.4% from 39.0% at the previous fiscal year-end.

Outlook and guidance

• Full-year consolidated revenues are forecast at ¥2,900.0 billion (down 5.5% year-over-year), with operating income projected at ¥200.0 billion (down 16.9%) and net income attributable to owners of the parent at ¥170.0 billion (down 4.1%).

• Dividend forecast for the year ending March 31, 2027, is ¥146.00 per share, unchanged from the previous year.

• Interest-bearing debt is expected to rise to ¥980.0 billion by March 31, 2027.

• Focus remains on improving construction margins and advancing property sales in both domestic and overseas real estate.

• Continued attention to material/equipment prices and interest rates, with risk factors incorporated into forecasts.