Chiyoda (6366) Q4 2026 earnings summary

Executive summary

• Achieved record-high profits in all profit categories for FY2025/FY2026, driven by profit and loss improvement on the Golden Pass LNG project and successful execution of major EPC projects.

• New orders reached JPY 298 billion, surpassing the forecast of JPY 250 billion, with a 41.1% year-over-year increase.

• No physical damage reported on ongoing projects in the Middle East; construction has resumed and operations are nearing previous levels.

• Order backlog declined 17.1% to JPY 613.1 billion due to project completions.

Financial highlights

• FY2025/FY2026 revenue was JPY 493.9 billion, up JPY 37.0 billion or 8.1% year-over-year.

• Gross profit rose to JPY 100.5 billion from JPY 42.3 billion, with margin improving to 20.4% from 9.3%.

• Operating income increased to JPY 82.1 billion (16.6% margin), up from JPY 24.4 billion (5.3%).

• Profit attributable to owners of parent was JPY 84.7 billion, up from JPY 27.0 billion.

• Shareholders’ equity/net assets rose to JPY 115.9 billion, with equity ratio improving to 22.2%.

Outlook and guidance

• FY2026/FY2027 revenue forecast is JPY 340.0 billion, a decrease of JPY 153.9 billion or 31.2% year-over-year.

• Gross profit expected to decline to JPY 29.5 billion, with margin dropping to 8.7%.

• Operating income forecasted at JPY 10.0 billion (2.9% margin); profit at JPY 12.0 billion.

• New orders target for FY2026 is JPY 300 billion, mainly from domestic projects.

• No dividend forecast for FY2027 as all distributable amounts will be allocated to redeem Class A preferred shares.