JGC (1963) Q4 2026 earnings summary

Executive summary

• Achieved strong operating profit in FY2025, reversing the prior year’s loss, with net sales of ¥745.2B–¥745.3B, operating profit of ¥35.3B–¥35.4B, and profit attributable to owners of ¥41.8B.

• Net profit grew significantly, driven by higher non-operating income, including FX gains.

• Strong demand in LNG, oil refining, and semiconductor sectors drove growth, while some sustainable-sector projects faced delays due to rising CAPEX and policy uncertainties.

• Overseas and domestic engineering projects progressed, with notable contract wins in LNG, oil, and data center sectors.

• Functional Materials Manufacturing benefited from robust catalyst and fine ceramics demand, especially in Asia and semiconductor markets.

Financial highlights

• FY2025 net sales were ¥745.2B–¥745.3B, down 13.1% year-over-year, but gross profit surged 238.9% to ¥64.1B.

• Operating profit rebounded to ¥35.3B–¥35.4B from a prior year loss, and profit attributable to owners was ¥41.8B.

• Ordinary profit surged to ¥58.2B (up 414% year-over-year), and comprehensive income rose to ¥48.5B.

• Cash and cash equivalents at year-end increased to ¥400.4B–¥400.5B.

• Equity ratio improved to 51.2% as of March 31, 2026.

Outlook and guidance

• FY2026 forecasts: net sales ¥670.0B, operating profit ¥40.0B, profit attributable to owners ¥46.0B, and earnings per share projected at ¥190.25.

• Gross profit margin expected to rise to 10.9% in FY2026.

• New contracts forecast to jump to ¥1,740.0B in FY2026.

• Assumes easing Middle East tensions in H1 2026 and includes ¥20B in extraordinary gains from asset sales.

• Continued strong demand expected in LNG, semiconductors, and data centers, but some project delays anticipated due to rising CAPEX and policy uncertainties.