Mori-Gumi Co., Ltd. Revises Earnings Forecast — Net Profit Up 36%
Mori-Gumi Co., Ltd. (TSE:1853) has revised its earnings forecast for the fiscal year ending March 2026, lowering revenue guidance while significantly raising profit expectations across all bottom-line metrics.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 28.8bn | JPY 28.0bn | -2.6% |
| Operating Profit | JPY 1.02bn | JPY 1.33bn | +30.9% |
| Ordinary Income | JPY 1.02bn | JPY 1.31bn | +28.8% |
| Net Profit | JPY 680M | JPY 926M | +36.2% |
| １株当たり当期純利益 | JPY 21M | JPY 28M | +36.3% |
The construction company attributed the JPY 760M revenue decline to delayed project commencement and slower-than-expected construction progress on existing contracts. However, management emphasized that profitability has improved materially through design change negotiations and additional/revised contracts that reflect inflationary cost pressures, boosting project margins across the portfolio.
The revision demonstrates operational leverage in Mori-Gumi’s business model, with margin expansion offsetting top-line headwinds. Net profit guidance rose JPY 246M, or 36.2%, while ordinary income (keijo rieki)—a Japan-specific metric capturing operating profit plus non-operating items—increased 28.8%. Earnings per share is now projected at JPY 28.29, up from JPY 20.76. For international investors, the ordinary income line reflects financial income and expenses alongside core operations, distinguishing it from operating profit alone. The upward revision signals management confidence in contract profitability despite construction delays, though investors should monitor whether delayed projects materialize as scheduled in the second half of the fiscal year.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.