Komori
Financial results presentation1434JESCO Holdings,Inc.Construction and Materials

Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending August 2026

In the first half of the fiscal year ending August 2026, revenue increased 25.9% year on year and operating profit increased 119.8%, resulting in higher revenue and profit. Domestic EPC and real estate drove performance, while ASEAN EPC recorded lower revenue and orders in the construction segment are being restrained.

Worth reading
59In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
716
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 August 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥10,934 million+25.9%
Operating profit¥1,315 million+119.8%
Ordinary income1,340 Million yen +117.9%ordinary profit, as the company does not use IFRS
Net income¥831 million +118.0%net income attributable to owners of the parent
Selling, general and administrative expenses¥675 million
Gross Profit Margin
Rate18.2% (gross profit of ¥1,990 million ÷ revenue of ¥10,934 million)
Year-on-year change (points)The year-on-year change shown in the materials is +49.8% for gross profit; the year-on-year change in the margin is Not disclosed
Operating profit margin
Rate12.0% (operating profit of ¥1,315 million ÷ revenue of ¥10,934 million)
Year-on-year change (points)The year-on-year change in the margin is Not disclosed in the materials
Full-year earnings forecast
Net Sales
¥20,000 million
Gross profit
¥3,250 million
Selling, general and administrative expenses
¥1,450 million
Operating profit
¥1,800 million
Ordinary income
¥1,750 million
Profit attributable to owners of the parent
¥1,100 million
Orders received
¥20,500 million
Order backlog
¥10,501 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress is generally in line with the medium-term management plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net Sales
Domestic EPC+¥395 million
Real Estate Business+¥2,075 million
Operating profit
Domestic EPC+¥336 million
ASEAN EPC+¥51 million
Real Estate Business+¥461 million
Adjustments-¥132 million
New initiatives
  • Considering entering the power-selling business by owning its own grid-scale battery storage facilities
  • Expand orders for communications systems in western Japan and nationwide by opening the Kobe office
  • Recruit Vietnamese engineers, train them at the Gunma Training Center, and assign them to domestic group companies
  • Considering M&A of 2–3 companies in the same industry, on a scale of approximately ¥3 billion, toward the fiscal year ending August 2028
  • Reform business processes using generative AI
  • Shift the business model from real estate resales to real estate regeneration
Key KPIsA metric the company considers important as a management benchmark.
  • ROA (ordinary profit to total assets)7.6 %
    Year on year against the same period last yearImproved from 3.3% in the prior year
  • Orders received¥13,689 million
    Year on year against the same period last year¥7,544 million in the same period of the prior year
  • Order backlog¥12,756 million
    Year on year against the same period last year¥7,988 million in the same period of the prior year
  • Number of grid-scale battery storage projects ordered5 Engagements
  • Number of grid-scale battery storage projects under discussion6 Engagements
Segment results
Domestic EPC
Net Sales
¥6,084 million+7.0%
Operating profit
¥764 million+78.7%
ASEAN EPC
Net Sales
¥758 million-22.8%
Operating profit
¥-29 million
Real Estate
Net Sales
¥4,091 million+102.9%
Operating profit
¥779 million+145.4%
Medium-term management plan targets
Fiscal year ending August 2028
Net Sales¥25 billion
Operating profit¥2.5 billion
ROEOver 15%
Payout ratio40%
Fiscal year ending August 2035
Net Sales¥50.0 billion
Operating profit¥5 billion
Comparison with actual resultsFiscal year ended August 2025 actual results were revenue of ¥19 billion, operating profit of ¥1.7 billion, ROE of 15.3%, and a dividend payout ratio of 25.8%. The fiscal year ending August 2026 plan calls for revenue of ¥20 billion and operating profit of ¥1.8 billion; ROE, the dividend payout ratio and other figures are also provided
Financial targets
ROEAbove 15% for the fiscal year ending August 2028 (15.3% in the fiscal year ended August 2025)
PBRTarget of 1.0x or higher
Market Size / Share
  • Construction market size (real terms)¥58.4 trillion in fiscal 2025, ¥64.9 trillion in fiscal 2030, and ¥67.6 trillion in fiscal 2035
  • Budget for projects associated with the strengthening of defense facilities¥695.3 billion in fiscal 2025
  • Market size for disaster prevention and information systems and related areasShown in a chart; specific figures are 非開示
Orders received and order backlog
Orders received
First-half results¥13,689 million
Second-half forecast¥6,811 million
Full-year outlook¥20,500 million
Order backlog
First-half results¥12,756 million
Second-half forecast¥10,501 million
Full-year outlook¥10,501 million
Number of stores and locations
The Kobe office was opened on 1 March 2026. The total number of stores and other sites at period-end and the number of openings and closures during the period are Not disclosed
Number of employees
Changes during the period and hiring planThe medium-term management plan calls for hiring more than 75 people over 3 years. As of 1 April 2026, the workforce had increased by 29 people through recruitment and new hires, including 2 Vietnamese engineers
Annual Dividend
Forecast for the fiscal year ending August 2026¥48 per share (total dividends of ¥333 million)
Payout ratio
30% planned for the fiscal year ending August 2026; target of 40% for the fiscal year ending August 2028 (25.8% in the fiscal year ended August 2025)
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending August 2026
Net Sales¥10,934 million (YoY +25.9%)
Operating profit¥1,315 million (YoY +119.8%)
Ordinary income1,340 Million yen (ordinary profit, as the company does not use IFRS) (YoY +117.9%)
Net income¥831 million (net income attributable to owners of the parent) (YoY +118.0%)
Gross Profit MarginRate 18.2% (gross profit of ¥1,990 million ÷ revenue of ¥10,934 million) / Year-on-year change (points) The year-on-year change shown in the materials is +49.8% for gross profit; the year-on-year change in the margin is Not disclosed
Operating profit marginRate 12.0% (operating profit of ¥1,315 million ÷ revenue of ¥10,934 million) / Year-on-year change (points) The year-on-year change in the margin is Not disclosed in the materials
Selling, general and administrative expenses¥675 million
Full-year earnings forecastNet Sales ¥20,000 million / Gross profit ¥3,250 million / Selling, general and administrative expenses ¥1,450 million / Operating profit ¥1,800 million / Ordinary income ¥1,750 million / Profit attributable to owners of the parent ¥1,100 million / Orders received ¥20,500 million / Order backlog ¥10,501 million
Self-assessment against the planProgress is generally in line with the medium-term management plan
Segment resultsDomestic EPC Net Sales ¥6,084 million (YoY +7.0%) / Operating profit ¥764 million (YoY +78.7%) / ASEAN EPC Net Sales ¥758 million (YoY -22.8%) / Operating profit ¥-29 million / Real Estate Net Sales ¥4,091 million (YoY +102.9%) / Operating profit ¥779 million (YoY +145.4%)
Breakdown of Factors Affecting the ChangeNet Sales Domestic EPC +¥395 million / Real Estate Business +¥2,075 million / Operating profit Domestic EPC +¥336 million / ASEAN EPC +¥51 million / Real Estate Business +¥461 million / Adjustments -¥132 million
Key KPIsIndicator name ROA (ordinary profit to total assets) / Value 7.6 % / Year on year against the same period last year Improved from 3.3% in the prior year, Indicator name Orders received / Value ¥13,689 million / Year on year against the same period last year ¥7,544 million in the same period of the prior year, Indicator name Order backlog / Value ¥12,756 million / Year on year against the same period last year ¥7,988 million in the same period of the prior year, Indicator name Number of grid-scale battery storage projects ordered / Value 5 Engagements / Year on year against the same period last year Not disclosed, Indicator name Number of grid-scale battery storage projects under discussion / Value 6 Engagements / Year on year against the same period last year Not disclosed
Number of stores and locationsThe Kobe office was opened on 1 March 2026. The total number of stores and other sites at period-end and the number of openings and closures during the period are Not disclosed
Number of employeesNumber of Employees Not disclosed / Changes during the period and hiring plan The medium-term management plan calls for hiring more than 75 people over 3 years. As of 1 April 2026, the workforce had increased by 29 people through recruitment and new hires, including 2 Vietnamese engineers
Medium-term management plan targetsFiscal year ending August 2028 Net Sales ¥25 billion / Operating profit ¥2.5 billion / ROE Over 15% / Payout ratio 40% / Fiscal year ending August 2035 Net Sales ¥50.0 billion / Operating profit ¥5 billion / Comparison with actual results Fiscal year ended August 2025 actual results were revenue of ¥19 billion, operating profit of ¥1.7 billion, ROE of 15.3%, and a dividend payout ratio of 25.8%. The fiscal year ending August 2026 plan calls for revenue of ¥20 billion and operating profit of ¥1.8 billion; ROE, the dividend payout ratio and other figures are also provided
Financial targetsROE Above 15% for the fiscal year ending August 2028 (15.3% in the fiscal year ended August 2025) / PBR Target of 1.0x or higher
Annual DividendForecast for the fiscal year ending August 2026 ¥48 per share (total dividends of ¥333 million) / Interim and Year-End Breakdown Not disclosed
Payout ratio30% planned for the fiscal year ending August 2026; target of 40% for the fiscal year ending August 2028 (25.8% in the fiscal year ended August 2025)
Orders received and order backlogOrders received First-half results ¥13,689 million / Second-half forecast ¥6,811 million / Full-year outlook ¥20,500 million / Order backlog First-half results ¥12,756 million / Second-half forecast ¥10,501 million / Full-year outlook ¥10,501 million
Market Size / ShareMarket Construction market size (real terms) / Value ¥58.4 trillion in fiscal 2025, ¥64.9 trillion in fiscal 2030, and ¥67.6 trillion in fiscal 2035, Market Budget for projects associated with the strengthening of defense facilities / Value ¥695.3 billion in fiscal 2025, Market Market size for disaster prevention and information systems and related areas / Value Shown in a chart; specific figures are Not disclosed
New initiativesConsidering entering the power-selling business by owning its own grid-scale battery storage facilities, Expand orders for communications systems in western Japan and nationwide by opening the Kobe office, Recruit Vietnamese engineers, train them at the Gunma Training Center, and assign them to domestic group companies, Considering M&A of 2–3 companies in the same industry, on a scale of approximately ¥3 billion, toward the fiscal year ending August 2028, Reform business processes using generative AI, Shift the business model from real estate resales to real estate regeneration
Items this document does not state (8)
Results for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresKey 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.

The factors cited for the increases in revenue and profit were strong performance in communications systems and electrical equipment construction, higher utilization and progress on highly profitable projects, growth in orders for design and cost estimation, the sale of 2 properties held for real estate sales, and full occupancy of owned buildings. In ASEAN EPC, the company is limiting orders from local companies and strengthening the collection of accounts receivable.

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Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending August 2026 | JESCO Holdings,Inc. (1434) timely disclosure | Komori