Taisei (1801) investor relations material

Executive summary

• Achieved record-high profits in FY2025, driven by improved margins in domestic building construction and gains from cross-shareholding sales.

• Net sales decreased 3.0% year-over-year to ¥2,089.1 billion, mainly due to a decline in building construction sales.

• Operating income surged 56.4% year-over-year to ¥187.9 billion, driven by a 42.8% increase in gross profit and improved profit margins in civil engineering and building construction.

• Net income attributable to owners of parent rose 37.3% year-over-year to ¥170.0 billion, aided by higher extraordinary gains from investment securities sales.

• Continued progress on the Medium-Term Business Plan (2024–2026), exceeding management targets and focusing on profit growth.

Financial highlights

• FY2025 net sales: ¥2,089.0bn (down 3.0% YoY); FY2026 forecast: ¥2,420.0bn (+15.8%).

• FY2025 operating income: ¥187.9bn (+56.4% YoY); FY2026 forecast: ¥188.0bn (flat YoY).

• FY2025 net income: ¥170.0bn (+37.3% YoY); FY2026 forecast: ¥151.0bn (down 11.2%).

• Operating income margin improved to 9.0% from 5.6% YoY.

• ROE reached 18.7% in FY2025; forecasted at 15.4% for FY2026.

Outlook and guidance

• FY2026 net sales expected to rise on large-scale project execution; operating income to remain stable despite higher SG&A.

• Net income projected to decline due to increased interest expenses and reduced gains from cross-shareholding sales.

• Annual dividend for FY2026 set at ¥380 per share (41.0% payout ratio), up from ¥310 per share.

• Orders received expected at ¥2,330.0 billion for FY2026.

• Dividend payout ratio raised to a minimum of 40% from FY2026.