Fudo Tetra Corporation (1813) Q2 2025 earnings summary

Executive summary

• Orders increased by 8.9% year-over-year to ¥37.1 billion, but revenue declined by 10.8% to ¥29.8 billion and operating profit dropped 74.0% to ¥380 million for the second quarter compared to the same period last year.

• Net profit attributable to shareholders fell 60.8% year-over-year to ¥450 million.

• Despite increased order backlog and new orders, delays in large projects and higher construction costs impacted profitability.

• Segment performance varied: civil engineering and ground improvement saw revenue declines due to project delays, while block business was impacted by fewer large orders.

Financial highlights

• Orders: ¥37.1 billion (+8.9% YoY), Revenue: ¥29.8 billion (−10.8% YoY), Operating profit: ¥380 million (−74.0% YoY), Ordinary profit: ¥600 million (−63.8% YoY), Net profit: ¥450 million (−60.8% YoY).

• Operating profit fell sharply to ¥381 million from ¥1,463 million year-over-year.

• Comprehensive income was ¥606 million, down 58.2% year-over-year.

• EPS for the period was ¥29.75, compared to ¥75.75 in the previous year.

• Gross profit margin decreased to 15.4% from 16.8% year-over-year.

• Operating profit margin dropped to 1.3% from 4.4% year-over-year.

Outlook and guidance

• Full-year revenue forecast is ¥71.5 billion, up from ¥67.9 billion last year.

• Operating profit is projected to rise to ¥3.0 billion from ¥2.66 billion last year.

• Full-year revenue forecast remains unchanged at ¥71,500 million, with operating profit projected at ¥3,000 million and net profit at ¥2,100 million.

• No revision to previously announced earnings guidance.

• Strategic investments of ¥25.5 billion planned under the new mid-term plan, with a focus on new business creation and business domain expansion.