Dai-Dan (1980) Q1 2025 earnings summary

Executive summary

• Achieved higher sales and profits year-over-year in the first quarter, driven by strong demand for new construction and renovations, especially in industrial facilities and air conditioning/plumbing installations.

• Net sales for Q1 FY2025 rose 8.8% year-over-year to ¥44,325 million, with operating profit up 149.4% to ¥1,725 million and profit attributable to owners of parent up 73.1% to ¥1,306 million.

• Orders for renovations and industrial facilities reached record highs, while public works, overseas orders, and electrical installations declined.

• Gross profit and operating profit margins improved, reflecting better project profitability and price pass-through.

• Comprehensive income for the quarter was ¥1,631 million, down 11.3% year-over-year.

Financial highlights

• Net sales of construction contract orders received rose 11.7% year-over-year to ¥74,864 million.

• Gross profit on completed contracts grew 28.5% to ¥5,731 million; gross profit margin rose 2.0 points to 12.9%.

• Ordinary profit rose 86.2% to ¥2,125 million compared to the same quarter last year.

• EPS for Q1 FY2025 was ¥30.50, up from ¥17.63 after adjusting for a 2-for-1 stock split.

• Cash and cash equivalents at period-end more than doubled to ¥41,250 million, mainly due to increased borrowings and efficient receivables collection.

Outlook and guidance

• Full-year FY2025 guidance: net sales ¥250,000 million, operating profit ¥15,000 million, ordinary profit ¥15,300 million, profit attributable to owners of parent ¥11,000 million, EPS ¥256.70.

• No revisions to previously published forecasts.

• Sufficient backlog of uncompleted contracts supports confidence in meeting full-year targets.

• Dividend payout ratio raised to 40% or higher, with a minimum DOE of 4% starting this fiscal year.