Worth reading
60In 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
2500
¥ million (increase in full-year operating income forecast)Wording
Conditional
How definitive the wording is.Contents of this document
Results presentationSecond quarter of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥86,532 million+14.4%
Operating profit¥771 million-31.2%
Ordinary income¥436 million-62.9%
Net income¥64 million-89.3%
Gross Profit Margin22.8 %
Operating profit margin0.9 %
Selling, general and administrative expensesIncrease of 3,632
Full-year earnings forecast
Orders received
¥260,000 million
Net Sales
¥245,000 million
Operating profit
¥17,500 million
Ordinary income
¥17,300 million
Profit attributable to owners of the parent
¥12,000 million
Earnings per share
¥274.69
Annual dividend
¥90
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressing broadly in line with the planBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net SalesRevenue increase: 2,369 million; gross profit margin improvement: 913 million; increase in selling, general and administrative expenses: 3,632 million
Operating profitDomestic business: revenue increase +¥0.7 billion, gross profit margin improvement +¥0.9 billion, increase in selling, general and administrative expenses -¥0.9 billion. Overseas business: revenue increase +¥1.7 billion, gross profit margin improvement -¥0.1 billion, increase in selling, general and administrative expenses -¥2.7 billion
Full-year operating profit forecastRevenue increase +¥1.1 billion, gross profit margin improvement +¥2.4 billion, increase in selling, general and administrative expenses -¥1.0 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rate¥158.0/US$ (current forecast)
QuantityAssumes strong demand from North American subsidiaries and strong performance of existing products and new technologies; specific volumes: Not disclosed
New initiatives
- Proceed with the acquisition of shares in SUIDO KIKO KAISHA,LTD. and raise the ownership interest from 34.8% to 48.1%
- Deploy new solutions overseas, including AAS's CMF, Nereda® and PFAS countermeasures
- Expand the business and strengthen profitability to achieve the Next2037 long-term target ahead of schedule
Key KPIsA metric the company considers important as a management benchmark.
- Orders received¥141,745 millionYear on year against the same period last year+30.2%
- Order Backlog¥444,545 millionYear on year against the same period last year+¥88,828 million
- Overseas business revenue ratio (full-year forecast)29 %
- Overseas business operating income ratio (full-year forecast)33.7 %
- AAS revenue
Segment results
Environmental Engineering business
Orders received
¥29,740 million+32.1%
Net Sales
¥23,776 million+23.3%
Operating profit
¥-171 million-1,105.9%
System Solutions Business
Orders received
¥37,367 million-8.7%
Net Sales
¥18,026 million+4.3%
Operating profit
¥-1,851 million+16.2%
Operations Business
Orders received
¥27,730 million+52.7%
Net Sales
¥13,605 million+8.9%
Operating profit
¥1,059 million+111.0%
Overseas Business
Orders received
¥46,906 million+72.1%
Net Sales
¥31,124 million+17.0%
Operating profit
¥1,734 million-38.3%
Medium-term management plan targets
Orders received
¥260,000 million
Target fiscal yearFiscal year ending March 2027
Net Sales
¥245,000 million
Target fiscal yearFiscal year ending March 2027
Operating profit
¥17,500 million
Target fiscal yearFiscal year ending March 2027
ROE
11% or higher
Target fiscal yearFiscal year ending March 2027
Long-term target Next2037
Net Sales
¥3,000 100 million
Target fiscal yearFiscal year ending March 2037
Financial targets
ROEAt least 11% (target under Medium-Term Management Plan 2027)
Orders received and order backlog
Orders received
¥141,745 million
Order backlog
¥444,545 million
Number of stores and locations
52 domestic locations (number of openings and closures during the period: Not disclosed)Annual Dividend
Annual dividend per share¥90
Payout ratio
30～40
| Item | Details |
|---|---|
| Document type | Results presentation |
| Fiscal Period Covered | Second quarter of the fiscal year ending March 2027 |
| Net Sales | ¥86,532 million (YoY +14.4%) |
| Operating profit | ¥771 million (YoY -31.2%) |
| Ordinary income | ¥436 million (YoY -62.9%) |
| Net income | ¥64 million (YoY -89.3%) |
| Gross Profit Margin | 22.8 % |
| Operating profit margin | 0.9 % |
| Selling, general and administrative expenses | Increase of 3,632 |
| Full-year earnings forecast | Orders received ¥260,000 million / Net Sales ¥245,000 million / Operating profit ¥17,500 million / Ordinary income ¥17,300 million / Profit attributable to owners of the parent ¥12,000 million / Earnings per share ¥274.69 / Annual dividend ¥90 |
| Self-assessment against the plan | Progressing broadly in line with the plan |
| Segment results | Environmental Engineering business Orders received ¥29,740 million (YoY +32.1%) / Net Sales ¥23,776 million (YoY +23.3%) / Operating profit ¥-171 million (YoY -1,105.9%) / System Solutions Business Orders received ¥37,367 million (YoY -8.7%) / Net Sales ¥18,026 million (YoY +4.3%) / Operating profit ¥-1,851 million (YoY +16.2%) / Operations Business Orders received ¥27,730 million (YoY +52.7%) / Net Sales ¥13,605 million (YoY +8.9%) / Operating profit ¥1,059 million (YoY +111.0%) / Overseas Business Orders received ¥46,906 million (YoY +72.1%) / Net Sales ¥31,124 million (YoY +17.0%) / Operating profit ¥1,734 million (YoY -38.3%) |
| Breakdown of Factors Affecting the Change | Net Sales Revenue increase: 2,369 million; gross profit margin improvement: 913 million; increase in selling, general and administrative expenses: 3,632 million / Operating profit Domestic business: revenue increase +¥0.7 billion, gross profit margin improvement +¥0.9 billion, increase in selling, general and administrative expenses -¥0.9 billion. Overseas business: revenue increase +¥1.7 billion, gross profit margin improvement -¥0.1 billion, increase in selling, general and administrative expenses -¥2.7 billion / Full-year operating profit forecast Revenue increase +¥1.1 billion, gross profit margin improvement +¥2.4 billion, increase in selling, general and administrative expenses -¥1.0 billion |
| Key KPIs | Indicator name Orders received / Value ¥141,745 million / Year on year against the same period last year ¥30.2 million, Indicator name Order Backlog / Value ¥444,545 million / Year on year against the same period last year +¥88,828 million, Indicator name Overseas business revenue ratio (full-year forecast) / Value 29 % / Year on year against the same period last year Not disclosed, Indicator name Overseas business operating income ratio (full-year forecast) / Value 33.7 % / Year on year against the same period last year Not disclosed, Indicator name AAS revenue / Value Not disclosed / Year on year against the same period last year Not disclosed |
| Number of stores and locations | 52 domestic locations (number of openings and closures during the period: Not disclosed) |
| Assumptions Underlying the Business Outlook | Exchange rate ¥158.0/US$ (current forecast) / Quantity Assumes strong demand from North American subsidiaries and strong performance of existing products and new technologies; specific volumes: Not disclosed |
| Medium-term management plan targets | Orders received ¥260,000 million / Net Sales ¥245,000 million / Operating profit ¥17,500 million / ROE 11% or higher / Long-term target Next2037 Net Sales ¥3,000 100 million |
| Financial targets | ROE At least 11% (target under Medium-Term Management Plan 2027) / ROIC Not disclosed / Debt-to-equity ratio Not disclosed / Equity ratio Not disclosed |
| Annual Dividend | Annual dividend per share ¥90 / Interim Not disclosed / End of period Not disclosed |
| Payout ratio | 30～40 |
| Orders received and order backlog | Orders received ¥141,745 million / Order backlog ¥444,545 million |
| New initiatives | Proceed with the acquisition of shares in SUIDO KIKO KAISHA,LTD. and raise the ownership interest from 34.8% to 48.1%, Deploy new solutions overseas, including AAS's CMF, Nereda® and PFAS countermeasures, Expand the business and strengthen profitability to achieve the Next2037 long-term target ahead of schedule |
Items this document does not state (9)
Results for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of employeesRisk 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 increased in the first half due to large-scale construction projects in the environmental engineering business and the consolidation effect of overseas subsidiaries, but operating income declined due to the processing of unprofitable projects at Schwing, low-margin projects and higher selling, general and administrative expenses. The full-year forecast was raised to reflect strong performance of existing products and new technologies in the overseas business, improved margins in the overseas business and improved profitability in the domestic environmental engineering business and other operations.
How to read this page
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