Nankai Tatsumura Construction Co., Ltd. (TSE:1850) has revised its earnings forecast for the fiscal year ending March 2026, projecting lower revenue but improved profitability.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 48.5bn | JPY 45.8bn | -5.6% |
| Operating Profit | JPY 2.23bn | JPY 2.84bn | +27.4% |
| Ordinary Income | JPY 2.24bn | JPY 2.85bn | +27.2% |
| Net Profit | JPY 1.52bn | JPY 2.09bn | +37.5% |
| EPS | JPY 52.73/share | JPY 72.50/share | +JPY 19.77/share |
The company cited reduced orders and lower production volumes as the main reason for the revenue decline. However, it noted that improved margins from ongoing projects are leading to higher operating profit and ordinary income.
The revision reflects a mixed outlook: revenue is expected to fall by 5.6% year-over-year, while operating profit and ordinary income are projected to rise by 27.4% and 27.2%, respectively. Net profit is forecast to increase by 37.5%, driven by better performance from completed projects.
The revised forecast suggests that Nankai Tatsumura is benefiting from improved efficiency in its ongoing projects, which may offset the decline in new orders. Investors should monitor the company’s ability to sustain this margin improvement amid a challenging market environment.