Fukuda-gumi Raises FY2026 Earnings Forecast on Strong Project Progress

Fukuda-gumi Raises FY2026 Earnings Forecast on Strong Project Progress

Fukuda-gumi (TSE:1899), a major Japanese construction firm, raised its full-year earnings and dividend guidance for the fiscal year ending December 2026, citing better-than-expected order intake and improved project execution across its consolidated operations.

The company lifted consolidated net profit attributable to parent shareholders by 28.0% to JPY 6.4bn, with earnings per share rising to JPY 390.24/share from JPY 301.90/share. On a non-consolidated basis, operating profit surged 60.0% to JPY 5.74bn, driven by steady progress on large-scale private building projects and a reduction in loss-making contracts. Management attributed the upward revision to stronger-than-planned order volumes at certain consolidated subsidiaries, coupled with improved gross margins on completed construction work. While acknowledging Middle East geopolitical risks and resulting material cost inflation, the company said these headwinds were offset by operational improvements and better project profitability.

Fukuda-gumi also increased its annual dividend by JPY 20/share to JPY 280/share, with both interim and year-end payouts raised by JPY 10/share to JPY 140/share each. The dividend hike reflects management’s commitment to the Medium-Term Management Plan 2030 target of a 50% payout ratio and a baseline dividend of JPY 130/share (adjusted for stock splits). The revision signals confidence in sustained earnings momentum and underscores the company’s shareholder-friendly capital allocation stance.

Source: Original filing (TDnet) | 日本語版

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