Consec Corporation Revises Earnings Forecast — Net Profit Swings to Loss

Consec Corporation Revises Earnings Forecast — Net Profit Swings to Loss

Consec Corporation (TSE:9895) has downwardly revised its earnings forecast for the fiscal year ending March 2026, citing weak large-project orders in its specialty construction division and rising input costs that will push the company to a net loss.

The company expects revenue to decline 1.1 percent to JPY 9.89bn as major construction contracts underperformed relative to initial projections. Operating profit will narrow to a loss of JPY 8M from an anticipated JPY 90M loss, while ordinary income (keijo rieki)—a Japan-specific metric capturing non-operating items—will improve significantly to JPY 92M. However, the company plans to record an impairment loss of JPY 304M on its Hiroshima and Kugata sales offices and rental properties in Hiroshima and Hofu due to declining asset values. This extraordinary charge will drive consolidated net profit to a loss of JPY 141M, reversing the initially forecast JPY 100M profit, with earnings per share swinging to negative JPY 80.37 from positive JPY 56.85.

The revision reflects structural headwinds: raw material inflation, yen weakness, and rising labor costs have compressed manufacturing and sales margins despite operational improvements. The impairment writedown signals asset quality concerns that warrant investor attention, though the company maintained its dividend forecast unchanged. The swing to net loss underscores deteriorating profitability despite modest ordinary income gains, suggesting near-term earnings recovery may be constrained.

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.