[Obayashi] MTP2022 KPIs — Operating Profit ~2x Target, ROE 14.4%

Note: This article is a factual summary based on Obayashi Corporation’s published IR material (Investors’ Guide, June 2026 edition). It is not a recommendation to buy or sell any security. Figures are as of the publication of the source material. Investment decisions are your own responsibility.

Page 25 of the Investors’ Guide is the report card for Obayashi’s Medium-Term Business Plan 2022 (MTP2022) — the same plan whose two-phase strategy is explained in Medium-Term Plan 2022 Strategy. It lines up ten financial and capital-efficiency indicators across five fiscal years, FY2022 through the FY2026 forecast, against the targets set out in the Addendum to the Medium-Term Business Plan 2022. Read together, they tell a simple story: with one year left in the plan, Obayashi has already cleared most of its headline targets, in some cases by a wide margin.

The full MTP2022 scorecard

The table below reproduces all ten KPIs the company tracks against MTP2022, with the final column showing each indicator’s target from the Addendum.

Indicator	FY2022	FY2023	FY2024	FY2025	FY2026 (Forecast)	MTP2022 Target
Consolidated net sales	¥1,983.8bn	¥2,325.1bn	¥2,590.7bn	¥2,586.2bn	¥2,945.0bn	Mid-¥2tn range
Consolidated operating profit	¥93.8bn	¥79.3bn	¥142.4bn	¥194.6bn	¥180.0bn	¥100.0bn or more
Profit attributable to owners of parent	¥77.6bn	¥75.0bn	¥145.3bn	¥173.7bn	¥157.0bn	Around ¥100.0bn
EPS (profit per share)	¥108.34	¥104.69	¥202.91	¥249.42	¥228.39	Around ¥140
Invested capital (period-end)	¥1,373.8bn	¥1,519.1bn	¥1,572.9bn	¥1,660.5bn	¥1,680.0bn	—
Equity (period-end)	¥997.1bn	¥1,151.6bn	¥1,158.2bn	¥1,258.4bn	¥1,290.0bn	¥1tn level
Interest-bearing debt & nonrecourse loans (period-end)	¥337.9bn	¥323.8bn	¥362.7bn	¥344.0bn	¥330.0bn	—
ROIC (return on invested capital)	4.9%	3.8%	6.4%	8.4%	7.4%	5% or more, medium-term
ROE (return on equity)	8.0%	7.0%	12.6%	14.4%	12.3%	10% or more by FY2026
DOE (dividend on equity ratio)	3.1%	5.0%	5.0%	5.1%	5.0%	Around 5%

Note: FY2024 figures in the table reflect the retrospective application of a change in Obayashi’s foreign-currency translation method, so they are not directly comparable to figures published before that change.

Reading the scorecard: three years of outperformance

Net sales grew from ¥1,983.8bn in FY2022 to a peak of ¥2,590.7bn in FY2024, eased slightly to ¥2,586.2bn in FY2025, and are forecast to reach ¥2,945.0bn in FY2026 — measured against the plan’s mid-¥2 trillion range target throughout.

The clearest outperformance, though, is in profitability. Consolidated operating profit was targeted at ¥100.0bn or more; Obayashi cleared that bar in FY2024 at ¥142.4bn and then moved close to double the target in FY2025 at ¥194.6bn. Return on equity (ROE) tells a similar story, and earlier than scheduled: the plan’s goal was 10% or more by FY2026, yet Obayashi posted 12.6% in FY2024 and 14.4% in FY2025 — two years ahead of the deadline. Return on invested capital (ROIC), a measure of how efficiently the company turns its whole capital base (equity plus debt) into profit, followed the same arc, rising from 4.9% in FY2022 to 8.4% in FY2025 against a medium-term target of 5% or more.

Profit per share (EPS) more than doubled over the period, from ¥108.34 in FY2022 to a peak of ¥249.42 in FY2025, well above the plan’s “around ¥140” goal. The dividend on equity ratio (DOE) — the metric Obayashi uses to set its ordinary dividend, explained in full in Capital Policy & Shareholder Returns — has held at or close to its “around 5%” target every year since FY2023. And equity at the end of FY2025 stood at ¥1,258.4bn, already above the plan’s “¥1 trillion level” goal; that capital surplus is part of the backdrop to the ¥100.0bn share buyback the company began in February 2025, covered in the same article.

The two rows without an explicit target round out the picture. Invested capital grew steadily, from ¥1,373.8bn in FY2022 to a forecast ¥1,680.0bn in FY2026, broadly tracking the growth in equity. Interest-bearing debt and nonrecourse loans moved in a narrower band over the same period, from ¥337.9bn in FY2022 to a forecast ¥330.0bn in FY2026, after peaking at ¥362.7bn in FY2024.

FY2026: a planned step back from the FY2025 peak, still above target

FY2026 is the final year of MTP2022, so this column is effectively where the plan is meant to land. Obayashi’s own FY2026 forecast does not extend the FY2025 highs across every line. Net sales are forecast to rise to ¥2,945.0bn, within the plan’s mid-¥2 trillion range target, but operating profit is forecast to ease to ¥180.0bn, profit attributable to owners of parent to ¥157.0bn, and EPS to ¥228.39 — each below its FY2025 level, though still above its MTP2022 target. The capital-efficiency ratios follow the same pattern: ROE is forecast at 12.3% and ROIC at 7.4% for FY2026, both down from their FY2025 peaks but still comfortably clear of the plan’s 10%-or-more and 5%-or-more targets. DOE is forecast at 5.0%, in line with the “around 5%” goal. Put simply, management’s own base case treats FY2025 as the high point of the plan rather than a stepping stone to a still-higher FY2026 — a useful benchmark to hold against whatever Obayashi eventually reports for the year.

What this means for investors

Read together with Medium-Term Plan 2022 Strategy, this page shows that the plan’s “transformation” phase — pushing consolidated operating profit past ¥100.0bn on a stable basis — has already arrived ahead of the FY2026 finish line. The equity and DOE rows connect directly to Capital Policy & Shareholder Returns, where Obayashi explains how it is managing a capital base that has grown past its own ¥1 trillion target. The operating-profit figures here are also the starting point for the cash-allocation math in Cash Allocation, which shows how roughly ¥480.0bn of five-year operating profit is expected to be split between investment and shareholder returns. For the specific drivers behind the FY2025 results, see Financial Data. Taken as a whole, this scorecard is the single best page in the guide for judging whether MTP2022 is running ahead of, in line with, or behind plan — and on nearly every line, it is running ahead.

This article is part of our complete breakdown of the Obayashi Investors’ Guide 2026. See the hub article for the full series.

Note: This article is a factual summary based on Obayashi Corporation’s published IR material (Investors’ Guide, June 2026 edition). It is not a recommendation to buy or sell any security. Figures are as of the publication of the source material. Investment decisions are your own responsibility.