Toda (1860) investor relations material

Executive summary

• Net sales rose 10.1% year-over-year to ¥645.7 billion, driven by large-scale construction projects and real estate sales by overseas subsidiaries.

• Operating profit increased 43.5% to ¥38.2 billion, and ordinary profit surged 51.2% to ¥44.0 billion, supported by higher dividend income and cost controls.

• Profit attributable to owners of parent climbed 46.8% to ¥37.0 billion, despite impairment losses, aided by gains on sale of investment securities.

• Comprehensive income reached ¥65.8 billion, up from ¥7.2 billion the previous year.

Financial highlights

• Gross profit grew 21.6% year-over-year to ¥92.2 billion, with improved profitability in architectural construction and overseas real estate sales.

• Total assets increased 8.1% to ¥998.4 billion, while net assets rose 14.1% to ¥403.2 billion.

• Equity ratio improved to 39.1% from 37.1% a year earlier.

• Cash flows from operating activities were ¥62.5 billion, up from ¥26.4 billion; cash and cash equivalents at year-end were ¥84.6 billion.

• Basic earnings per share rose to ¥123.34 from ¥83.59 year-over-year.

Outlook and guidance

• For FY2027, consolidated net sales are forecast at ¥753.0 billion (+16.6%), operating profit at ¥39.0 billion (+2.1%), ordinary profit at ¥40.0 billion (−9.1%), and profit attributable to owners of parent at ¥35.0 billion (−5.4%).

• Annual dividend for FY2027 is projected at ¥60 per share, up from ¥58 per share in FY2026.

• The company targets a dividend on equity (DOE) of 3.5% or more and a total payout ratio of about 70%.