Financial Results Presentation for the Second Quarter of the Fiscal Year Ending January 2027 | BESTERRA CO.,LTD (1433) timely disclosure

Worth reading

67In focus

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Direction

Mixed performance

Direction inferred from the company’s description.

Scale

348

Millions of yen (year-on-year increase in operating profit)

Wording

Conditional

How definitive the wording is.

Contents of this document

Financial Results PresentationSecond quarter of the fiscal year ending January 202712 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales5,895 Millions of yen+15.6%

Operating profit574 Millions of yen+154.1%

Ordinary income609 Millions of yen+183.2%

Net income99 Millions of yen-55.1%

Gross Profit Margin21.8%

Operating profit margin9.8%

Selling, general and administrative expenses710 Millions of yen

Results for the three months of the current quarter

Net Sales

2,621 Millions of yen

Operating profit

221 Millions of yen

Operating profit margin

8.4%

Full-year earnings forecast

Net Sales

13,000 Millions of yen

Operating profit

1,000 Millions of yen

Ordinary income

1,020 Millions of yen

Profit attributable to owners of the parent

530 Millions of yen

Earnings per share

¥59.81

ROE

10.6 %

Dividend per share

¥40

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Both revenue and operating profit have tracked above company forecasts

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Revenue increase144 Millions of yen
Margin improvement from optimizing estimates193 Millions of yen
Lower labor cost ratio21 Millions of yen
Factors behind the increase in SG&A expenses-10 Millions of yen

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Progress on large-scale construction projects is expected to accelerate in the second half. The year-end operating profit target remains unchanged after a conservative review of progress on large-scale construction projects. The impact of accidents on earnings is not included in the earnings forecast. Numerical assumptions: not disclosed

New initiatives

Promoting a three-tier approach to AI utilization
Joint project with HEROZ on applying AI to demolition technology
Opening of a new Osaka office
Social implementation of a resource-circulation scheme for wind turbine FRP blades through collaboration among 3 companies

Key KPIsA metric the company considers important as a management benchmark.

Orders received6,198 Millions of yen
Year on year against the same period last year+48.1%
Order backlog8,851 Millions of yen
Year on year against the same period last year+37.3%
Prime contractor profit margin26.3 %
Equity ratio38.3 %
Number of construction supervisors98 people

Medium-term management plan targets

Plan nameMedium-Term Management Plan 2030

Target fiscal yearFiscal year ending January 2031

Net Sales

30,000 Millions of yen

Operating profit

3,300 Millions of yen

Operating profit margin

11 %

ROE

20 %

Number of construction supervisors

205 people

Comparison with actual resultsForecast for the fiscal year ending January 2027: revenue ¥13,000 million, operating profit ¥1,000 million, ROE 10.6%, and 105 construction supervisors

Financial targets

ROE target13% or more

Forecast ROE10.6%

DOE guideline3.5% or higher

Payout ratio guideline40%

Actual equity ratio38.3%

Orders received and order backlog

Orders received

6,198 Millions of yen

Order backlog

8,851 Millions of yen

Number of stores and locations

Opened a new Osaka office. Other period-end location data and the number of openings and closures during the period: not disclosed

Number of employees

Number of construction supervisors98 people (net increase of 11 from the beginning of the fiscal year through September)

Hiring planPlanned net increase of 18 people in the fiscal year ending January 2027

Annual Dividend

Annual dividend per share¥40

Payout ratio

66.9 %

DOE

6.6 %

Contents of this document
Item	Details
Document type	Financial Results Presentation
Fiscal Period Covered	Second quarter of the fiscal year ending January 2027
Net Sales	5,895 Millions of yen (YoY +15.6%)
Operating profit	574 Millions of yen (YoY +154.1%)
Ordinary income	609 Millions of yen (YoY +183.2%)
Net income	99 Millions of yen (YoY -55.1%)
Gross Profit Margin	21.8%
Operating profit margin	9.8%
Selling, general and administrative expenses	710 Millions of yen
Results for the three months of the current quarter	Net Sales 2,621 Millions of yen / Operating profit 221 Millions of yen / Operating profit margin 8.4%
Full-year earnings forecast	Net Sales 13,000 Millions of yen / Operating profit 1,000 Millions of yen / Ordinary income 1,020 Millions of yen / Profit attributable to owners of the parent 530 Millions of yen / Earnings per share ¥59.81 / ROE 10.6 % / Dividend per share ¥40
Self-assessment against the plan	Both revenue and operating profit have tracked above company forecasts
Breakdown of Factors Affecting the Change	Factors Revenue increase / Amount 144 Millions of yen, Factors Margin improvement from optimizing estimates / Amount 193 Millions of yen, Factors Lower labor cost ratio / Amount 21 Millions of yen, Factors Factors behind the increase in SG&A expenses / Amount -10 Millions of yen
Key KPIs	Indicator name Orders received / Value 6,198 Millions of yen / Year on year against the same period last year +48.1%, Indicator name Order backlog / Value 8,851 Millions of yen / Year on year against the same period last year +37.3%, Indicator name Prime contractor profit margin / Value 26.3 % / Year on year against the same period last year Not disclosed, Indicator name Equity ratio / Value 38.3 % / Year on year against the same period last year Not disclosed, Indicator name Number of construction supervisors / Value 98 people / Year on year against the same period last year Not disclosed
Number of stores and locations	Opened a new Osaka office. Other period-end location data and the number of openings and closures during the period: not disclosed
Number of employees	Consolidated number of employees Not disclosed / Number of construction supervisors 98 people (net increase of 11 from the beginning of the fiscal year through September) / Hiring plan Planned net increase of 18 people in the fiscal year ending January 2027
Assumptions Underlying the Business Outlook	Progress on large-scale construction projects is expected to accelerate in the second half. The year-end operating profit target remains unchanged after a conservative review of progress on large-scale construction projects. The impact of accidents on earnings is not included in the earnings forecast. Numerical assumptions: not disclosed
Medium-term management plan targets	Plan name Medium-Term Management Plan 2030 / Target fiscal year Fiscal year ending January 2031 / Net Sales 30,000 Millions of yen / Operating profit 3,300 Millions of yen / Operating profit margin 11 % / ROE 20 % / Number of construction supervisors 205 people / Comparison with actual results Forecast for the fiscal year ending January 2027: revenue ¥13,000 million, operating profit ¥1,000 million, ROE 10.6%, and 105 construction supervisors
Financial targets	ROE target 13% or more / Forecast ROE 10.6% / DOE guideline 3.5% or higher / Payout ratio guideline 40% / Actual equity ratio 38.3%
Annual Dividend	Annual dividend per share ¥40 / Interim Not disclosed / End of period Not disclosed
Payout ratio	66.9 %
Orders received and order backlog	Orders received 6,198 Millions of yen / Order backlog 8,851 Millions of yen
New initiatives	Promoting a three-tier approach to AI utilization, Joint project with HEROZ on applying AI to demolition technology, Opening of a new Osaka office, Social implementation of a resource-circulation scheme for wind turbine FRP blades through collaboration among 3 companies

Items this document does not state (8)

Progress against full-year forecastSegment resultsUnit price and quantity metricsRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue and operating profit increased because large-scale construction projects progressed ahead of plan, while the gross profit margin improved from 18.2% to 21.8% through the pursuit of selective order acceptance and the development of estimation and quantity-surveying capabilities. The revision to the net income forecast reflects the recognition of a ¥313 million gain on the sale of investment securities and ¥499 million in valuation losses.

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