Kajima (1812) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 consolidated revenues rose 5.1% year-over-year to ¥613.2 billion, with operating income up 1.5% to ¥25.3 billion, mainly driven by overseas subsidiaries and affiliates, while net income attributable to owners declined 10.0% to ¥17.4 billion.

• Real estate segment drove revenue growth, while construction segment remained flat; comprehensive income fell 40.9% year-over-year.

• Domestic construction demand remained strong, with multiple large-scale project orders in Japan and overseas.

Financial highlights

• Gross profit increased 7.6% year-over-year to ¥61.7 billion, with gross margin improving to 10.1%.

• Consolidated Q1 revenues: ¥613.2 billion (up ¥29.7 billion YoY); operating income: ¥25.2–25.3 billion (up ¥0.3 billion YoY); net income: ¥17.4 billion (down ¥1.9 billion YoY).

• Overseas subsidiaries and affiliates saw significant revenue and income growth, especially from U.S. real estate sales.

• Basic EPS for Q1 FY2024 was ¥36.60, down from ¥40.03 in Q1 FY2023.

• Interest-bearing debt increased 14.2% from March 2024 to ¥699.4 billion.

Outlook and guidance

• FY2024 consolidated revenue forecast is ¥2,780 billion (+4.3% year-over-year), with operating income of ¥132 billion (−3.1%) and net income attributable to owners of ¥105 billion (−8.7%).

• Full-year basic EPS forecast is ¥222.47; dividend forecast unchanged at ¥90 per share.

• Consolidated contract awards forecast updated to ¥2.18 trillion, excluding backlog from a newly acquired U.S. construction company; contract awards expected to decline 25.5% year-over-year.

• Overseas subsidiaries and affiliates expected to meet full-year targets, with major property sales planned for the second half.