Obayashi (1802) investor relations material

Executive summary

• FY2025 consolidated net sales were ¥2,586.2B, nearly flat YoY, with operating profit up 36.6% to ¥194.6B and profit attributable to owners of parent up 19.5% to ¥173.7B, driven by strong overseas civil engineering, real estate sales, and additional claim approvals.

• Orders received declined 9.3% YoY to ¥3,009.0B, reflecting fewer large domestic projects and strategic order selection.

• FY2026 forecasts net sales of ¥2,945.0B (+13.9% YoY), operating profit of ¥180.0B (–7.5% YoY), and profit attributable to owners of parent of ¥157.0B (–9.6% YoY), with growth in overseas and civil engineering offset by lower domestic building margins.

Financial highlights

• FY2025 operating profit rose by ¥52.2B YoY to ¥194.6B, mainly from additional claim approvals, change orders, and profitable domestic building projects.

• Net income attributable to owners was ¥173.7B (+19.5% YoY); EPS was ¥249.42.

• Equity increased by ¥100.1B YoY to ¥1,258.4B; total assets reached ¥3,143.4B (+3.3% YoY); equity ratio was 40.0%.

• Interest-bearing debt fell by ¥18.6B to ¥344.0B (–5.2% YoY).

• Cash and cash equivalents rose by ¥35.8B to ¥416.0B, with strong operating cash flow of ¥252.9B.

Outlook and guidance

• FY2026 expects net sales growth from overseas building and civil engineering, but operating profit to decline due to fewer high-margin domestic projects.

• Orders received are forecast at ¥3,100.0B (+3.0% YoY), with domestic and overseas civil engineering growth offsetting a drop in overseas building.

• ROIC and ROE are projected at 7.4% and 12.3%, respectively, remaining above targets.

• Annual dividend forecast for FY2026 is ¥94 per share.