Shimizu Corporation Revises Earnings Forecast — Ordinary Income Up 24%
Shimizu Corporation (TSE:1803) raised its earnings forecast for the fiscal year ending March 2027, driven by a one-time accounting gain from an equity method investment.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 2310.0bn | JPY 2310.0bn | +0.0% |
| Operating Profit | JPY 153.0bn | JPY 153.0bn | +0.0% |
| Ordinary Income | JPY 148.0bn | JPY 183.5bn | +24.0% |
| 親会社株主に帰属する当期純利益 | JPY 130.0bn | JPY 165.5bn | +27.3% |
| １株当たり当期純利益 | JPY 19.1bn | JPY 24.4bn | +27.3% |
The revision reflects Shimizu’s acquisition of additional shares in Seiwa Sogo Kensetsu Co. in June 2026, which elevated the company to equity method affiliate status. In the first quarter of fiscal 2027, Shimizu will record a negative goodwill gain of JPY 35.5bn as non-operating income, boosting ordinary income (keijo rieki) and net profit accordingly. The company noted this figure is provisional pending completion of purchase price allocation.
The earnings lift is non-cash in nature—arising from consolidated accounting mechanics rather than operational cash generation. Consequently, Shimizu maintained its dividend forecast unchanged, signaling management’s view that the gain does not reflect sustainable earnings power. International investors should note that ordinary income, a Japan-specific profit metric, differs materially from operating profit and includes financial income and expenses; the JPY 35.5bn uplift sits entirely outside core operations.
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.