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Earnings presentation1963JGC HOLDINGS CORPORATIONConstruction and Materials

FY2025 Financial Results Overview for the Fiscal Year Ending March 2026

For the fiscal year ending March 2026, revenue declined, but operating income came to ¥35.3 billion and net income to ¥41.8 billion, exceeding the company’s forecasts, due in part to improved profitability on EPC projects. For the fiscal year ending March 2027, operating income is projected at ¥40.0 billion. The company changed its dividend policy from a payout-ratio-based standard to a DOE-based standard and indicated a policy of increasing dividends.

Worth reading
62In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
468
¥ hundred million
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFiscal year ending March 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥7,452 hundred million-13.1%
Operating profit¥353 hundred million
Ordinary income¥581 hundred million+414.0%
Net income¥418 hundred million
Gross Profit Margin8.6%
Full-year earnings forecast
Fiscal Period CoveredFiscal year ending March 2027
Orders received
¥17,400 hundred million
Net Sales
¥6,700 hundred million
Gross profit
¥730 hundred million
Operating profit
¥400 hundred million
Ordinary income
¥460 hundred million
Profit attributable to owners of the parent
¥460 hundred million
Dividend per share
¥52
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating income exceeded plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Impact of yen depreciation¥10 hundred million
  • Improved EPC profitability¥90 hundred million
  • Middle East impact¥-70 hundred million
  • Decrease in selling, general and administrative expenses¥13 hundred million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Middle East situation
    AssumptionsThe state of heightened tensions will be resolved in the first half of 2026, eliminating impediments to project execution
  • Conversion rate (U.S. dollar)¥150
  • Gain on sale of an equity-method affiliate¥200 hundred million
New initiatives
  • Change the dividend policy from a payout-ratio-based standard to a DOE-based standard
  • Aim for a DOE of 4% for the fiscal year ending March 2031
  • Consider conducting share repurchases as appropriate
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received (comprehensive engineering business)¥4,092 hundred million
  • Order backlog (consolidated)¥11,666 hundred million
    Year on year against the same period last year+1.0%
  • Middle East share of order backlog45 %
  • Equity ratio51.2 %
    Year on year against the same period last year+1.4pt
  • JV cash attributable to the company¥1,098 hundred million
Segment results
Integrated engineering
Net Sales
¥6,795 hundred million-15.0%
Segment profit
¥336 hundred million
Operating margin
5.0%
Year-on-year change (points)+6.8pt
Functional Materials Manufacturing
Net Sales
¥569 hundred million+4.0%
Segment profit
¥76 hundred million-6.0%
Operating margin
13.5%
Year-on-year change (points)-1.5pt
Other
Net Sales
¥86 hundred million+3.0%
Segment profit
¥21 hundred million-12.0%
Operating margin
24.3%
Year-on-year change (points)-4.1pt
Adjustments
Segment profit
¥-80 hundred million
Medium-term management plan targets
DOE
4 %
Target fiscal yearFiscal year ending March 2031
Financial targets
DOE
4 %
Target fiscal yearFiscal year ending March 2031
Equity ratio
Actual value51.2 %
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
¥600 hundred million
DetailsThe outlook factors in a decline in revenue due to the impact of slower progress resulting from the situation in the Middle East
Orders received and order backlog
Orders received
¥4,092 hundred million
Order backlog
¥11,666 hundred million
Annual Dividend
Annual dividend per share¥52
Payout ratio
DOE
4 %
Target fiscal yearFiscal year ending March 2031
Acquisition of treasury shares
The company will consider conducting share repurchases as appropriate based on the earnings outlook, cash flow position and capital efficiency
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥7,452 hundred million (YoY -13.1%)
Operating profit¥353 hundred million
Ordinary income¥581 hundred million (YoY +414.0%)
Net income¥418 hundred million
Gross Profit Margin8.6%
Full-year earnings forecastFiscal Period Covered Fiscal year ending March 2027 / Orders received ¥17,400 hundred million / Net Sales ¥6,700 hundred million / Gross profit ¥730 hundred million / Operating profit ¥400 hundred million / Ordinary income ¥460 hundred million / Profit attributable to owners of the parent ¥460 hundred million / Dividend per share ¥52
Self-assessment against the planOperating income exceeded plan
Segment resultsIntegrated engineering Net Sales ¥6,795 hundred million (YoY -15.0%) / Segment profit ¥336 hundred million / Operating margin 5.0% / Functional Materials Manufacturing Net Sales ¥569 hundred million (YoY +4.0%) / Segment profit ¥76 hundred million (YoY -6.0%) / Operating margin 13.5% / Other Net Sales ¥86 hundred million (YoY +3.0%) / Segment profit ¥21 hundred million (YoY -12.0%) / Operating margin 24.3% / Adjustments Segment profit ¥-80 hundred million
Breakdown of Factors Affecting the ChangeFactors Impact of yen depreciation / Amount ¥10 hundred million, Factors Improved EPC profitability / Amount ¥90 hundred million, Factors Middle East impact / Amount ¥-70 hundred million, Factors Decrease in selling, general and administrative expenses / Amount ¥13 hundred million
Key KPIsIndicator name Orders received (comprehensive engineering business) / Value ¥4,092 hundred million / Year on year against the same period last year Not disclosed, Indicator name Order backlog (consolidated) / Value ¥11,666 hundred million / Year on year against the same period last year ¥1 hundred million, Indicator name Middle East share of order backlog / Value 45 % / Year on year against the same period last year Not disclosed, Indicator name Equity ratio / Value 51.2 % / Year on year against the same period last year +1.4pt, Indicator name JV cash attributable to the company / Value ¥1,098 hundred million / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookItem Middle East situation / Assumptions The state of heightened tensions will be resolved in the first half of 2026, eliminating impediments to project execution, Item Conversion rate (U.S. dollar) / Value ¥150, Item Gain on sale of an equity-method affiliate / Value ¥200 hundred million
Risk amount incorporated into the outlookAmount ¥600 hundred million / Details The outlook factors in a decline in revenue due to the impact of slower progress resulting from the situation in the Middle East
Medium-term management plan targetsDOE Value 4 % / Target fiscal year Fiscal year ending March 2031
Financial targetsDOE Value 4 % / Target fiscal year Fiscal year ending March 2031 / Equity ratio Actual value 51.2 %
Annual DividendAnnual dividend per share ¥52 / Interim Not disclosed / End of period Not disclosed
Payout ratioRate Not disclosed / DOE Value 4 % / Target fiscal year Fiscal year ending March 2031
Acquisition of treasury sharesThe company will consider conducting share repurchases as appropriate based on the earnings outlook, cash flow position and capital efficiency
Orders received and order backlogOrders received ¥4,092 hundred million / Order backlog ¥11,666 hundred million
New initiativesChange the dividend policy from a payout-ratio-based standard to a DOE-based standard, Aim for a DOE of 4% for the fiscal year ending March 2031, Consider conducting share repurchases as appropriate
Items this document does not state (10)
Operating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesCapital 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.

Profitability in the comprehensive engineering business improved as the company steadily executed large-scale EPC projects in Japan and overseas. In addition, although the impact of risks related to the situation in the Middle East was factored into the outlook, non-operating income increased, including foreign exchange gains resulting from the weaker yen, while selling, general and administrative expenses were below forecast.

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FY2025 Financial Results Overview for the Fiscal Year Ending March 2026 | JGC HOLDINGS CORPORATION (1963) timely disclosure | Komori