Miyaji Engineering Group (3431) Q4 2025 earnings summary

Executive summary

• Net sales reached a record ¥74,725 million in FY2024, up 7.7% year-over-year, driven by steady progress in large-scale renovation and maintenance projects despite a challenging market for new orders.

• Operating profit rose 16.0% to ¥9,168 million, ordinary profit increased 20.1% to ¥9,496 million, and profit attributable to owners of parent grew 11.7% to ¥4,863 million, all achieving record highs.

• Orders received totaled ¥71,441 million, down 15.4% year-over-year, reflecting a significant drop in large-scale renovation and maintenance projects but still the second highest on record.

• The business environment was challenging due to inflation, downsizing of new construction contracts, and delays in large-scale renovation orders.

Financial highlights

• Net sales: ¥74,725 million (up 7.7% year-over-year).

• Operating profit: ¥9,168 million (up 16.0% year-over-year).

• Ordinary profit: ¥9,496 million (up 20.1% year-over-year).

• Profit attributable to owners of parent: ¥4,863 million (up 11.7% year-over-year).

• Gross profit increased to ¥14,201 million from ¥12,832 million year-over-year.

• Basic earnings per share rose to ¥181.78 from ¥159.98, and net assets per share increased to ¥1,519.96 from ¥1,458.95, both adjusted for a two-for-one share split.

• Total assets grew to ¥90,597 million, up from ¥74,146 million, while total net assets rose to ¥48,157 million.

• Cash and cash equivalents at year-end decreased to ¥16,502 million from ¥19,115 million.

• Order backlog at year-end: ¥112,496 million (down 2.8% year-over-year).

Outlook and guidance

• FY2025/FY2026 forecast: Net sales expected to decrease to ¥58,000 million (down 22.4% year-over-year), operating profit forecasted at ¥4,000 million (down 56.4%), ordinary profit ¥4,100 million (down 57.2%), and profit attributable to owners of parent at ¥2,500 million (down 48.6%).

• Dividend per share maintained at ¥97.5, with a total payout ratio of 60%.

• Management expects a gradual recovery in large-scale expressway renovation projects and continued opportunities in railroad-related projects.

• Order targets for new construction and renovation projects set at levels comparable to the previous year despite market headwinds.