Shimizu (1803) Q1 2027 earnings summary

Executive summary

• Net sales for 1Q FY2026 rose by 41.0 billion yen (9.3%) year-over-year to 482.8 billion yen, driven by strong domestic construction and civil engineering projects.

• Operating income increased by 2.0 billion yen (11.8%) to 19.3 billion yen, with improved profitability in core construction segments.

• Net income attributable to shareholders surged by 44.1 billion yen (396.5%) to 55.2 billion yen, boosted by a 35.5 billion yen gain from negative goodwill and a surge in equity in earnings of affiliates.

• Full-year forecasts for ordinary and net income were revised upward by 35.5 billion yen due to negative goodwill and higher affiliate earnings.

• Gross profit margin improved to 11.0% from 10.8% year-over-year.

Financial highlights

• 1Q FY2026 consolidated net sales: 482.8 billion yen (up 41.0 billion yen year-over-year).

• Operating income: 19.3 billion yen (up 2.0 billion yen year-over-year).

• Net income attributable to shareholders: 55.2 billion yen (up 44.1 billion yen year-over-year).

• Net income per share: 81.36 yen (up from 16.33 yen year-over-year).

• Total assets stood at 2,655.8 billion yen, with net assets at 1,029.2 billion yen as of June 30, 2026.

Outlook and guidance

• FY2026 net sales forecast: 2,310.0 billion yen (up 252.1 billion yen or 12.3% year-over-year).

• Operating income forecast: 153.0 billion yen (up 34.3 billion yen or 28.9% year-over-year).

• Net income forecast: 165.5 billion yen (up 38.8 billion yen or 30.7% year-over-year).

• Annual dividend forecast: 77 yen per share, up 5 yen from previous year.

• Forecast revision reflects recognition of non-operating income from equity in earnings of affiliates.