Miyaji Engineering Group (3431) Q2 2025 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2024, reached ¥36.1 billion, up 13.9% year-over-year, with operating profit at ¥4.48 billion, both exceeding initial plans and driven by large-scale projects.

• Full-year forecasts for FY2024 anticipate record highs: net sales of ¥73.0 billion, operating profit of ¥8.5 billion, and ordinary profit of ¥8.6 billion, though profit guidance was revised downward.

• Dividend per share is projected to increase to ¥97.5, reflecting a two-for-one stock split effective October 1, 2024.

• Orders received declined 41.6% year-over-year to ¥20,022 million due to fewer large projects and timing of order intake.

• Large-scale renovation and maintenance projects continue to provide a robust medium-term business environment.

Financial highlights

• Operating profit increased 51.8% year-over-year to ¥4,480 million; ordinary profit up 49.9% to ¥4,632 million.

• Profit attributable to owners of parent grew 27.1% year-over-year to ¥2,258 million.

• Orders received dropped 41.6% year-over-year to ¥20,022 million, reflecting timing of large project orders.

• Order backlog at Q2 end was ¥99,702 million, down 3.4% year-over-year.

• Basic earnings per share was ¥83.69, calculated assuming a two-for-one share split.

Outlook and guidance

• FY2024 net sales forecast maintained at ¥73.0 billion; operating profit revised downward to ¥8.5 billion due to additional costs and project delays.

• Profit attributable to owners of parent for the full year is forecast at ¥4,000 million, down 9.1% from previous guidance.

• Orders received for FY2024 revised down to ¥72,000 million from ¥84,000 million, reflecting postponement of large-scale projects.

• Dividend forecast unchanged at ¥97.5 per share, with a two-for-one share split effective October 1, 2024.

• Medium-term plan targets stable profit structure, sustainable growth, and continued high shareholder returns.