Obayashi Corporation announced an upward revision to its consolidated forecasts for the fiscal year ending March 2027 and a share buyback capped at 20 million shares. The announcement was viewed as a positive catalyst and supported afternoon trading.
Obayashi Corporation raised its consolidated forecasts for the fiscal year ending March 2027, with revenue revised from ¥2.945 trillion to ¥3.115 trillion, operating income from ¥180.0 billion to ¥205.0 billion, and net income from ¥157.0 billion to ¥173.0 billion. Revenue is expected to increase 20.4% year on year, operating income 5.3%, and net income to decline 0.4%.
The company explained that demand trends in its domestic building construction business, where labor shortages are particularly pronounced, as well as clients securing construction personnel early and making early decisions on additional change-order work, are expected to drive increases in completed construction revenue and gross profit on completed construction contracts. The completion in October of the acquisition of Multiplex also contributed to the incorporation of its results into the forecast. In addition, revenue for the six months ended September was ¥1.3364 trillion, operating income was ¥98.352 billion, and net income was ¥95.757 billion.
The company announced a share buyback capped at 20 million shares, equivalent to 2.92% of shares outstanding, or ¥30 billion, with the acquisition period running from 16 November to 29 January next year. The announcements were viewed positively by the market and affected share price movements in afternoon trading.