Raito Kogyo (1926): FY2025 Results Summary — Ground Improvement Orders Drive Operating Profit Up 34.3%

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

RAITO KOGYO CO., LTD. (1926) reported consolidated net sales of 139,216 million yen for FY2025, the fiscal year from April 1, 2025 to March 31, 2026, an increase of 17,759 million yen or 14.6% year on year. Operating profit rose 4,390 million yen or 34.3% to 17,201 million yen, ordinary profit rose 4,543 million yen or 34.5% to 17,712 million yen, and profit attributable to owners of parent rose 2,568 million yen or 25.9% to 12,487 million yen. Orders received increased 11,850 million yen or 9.0% to 143,760 million yen, and the consolidated gross profit margin improved 1.1 pt to 21.8%. For FY2026 the company forecasts net sales of 138,000 million yen and operating profit of 16,850 million yen, both slightly below the FY2025 result.

Consolidated Results (Full-Year Actual)

All figures below are presented in millions of yen as shown in the presentation. Gross profit, operating profit, ordinary profit and profit attributable to owners of parent all increased year on year, and the gross profit margin of 21.8% exceeded the company’s FY2025 target of 21.0% shown on the net sales and gross profit slide. Total assets stood at 125,930 million yen and net assets at 90,886 million yen, with an equity ratio of 71.5%, down 0.4 pt.

Item	FY2025	FY2024	FY2023	YoY Change (2024 to 2025)
Orders received	143,760	131,910	126,568	+11,850 / 9.0%
Net sales	139,216	121,457	117,324	+17,759 / 14.6%
Gross profit	30,326	25,097	23,220	+5,229 / 20.8%
Gross profit margin	21.8%	20.7%	19.8%	+1.1 pt
Operating profit	17,201	12,811	11,245	+4,390 / 34.3%
Ordinary profit	17,712	13,169	11,609	+4,543 / 34.5%
Profit attributable to owners of parent	12,487	9,919	8,181	+2,568 / 25.9%
Total assets	125,930	122,209	124,447	+3,721 / 3.0%
Net assets	90,886	88,674	91,094	+2,212 / 2.5%
Equity ratio	71.5%	71.9%	72.5%	(0.4 pt)

The slide annotates the year-on-year movements by company: orders received RAITO KOGYO +7,132, O-NO-RYO (277) and RAITO (U.S.) +3,600; net sales RAITO KOGYO +13,951, O-NO-RYO (209) and RAITO (U.S.) +3,745; gross profit RAITO KOGYO +4,540, O-NO-RYO (291) and RAITO (U.S.) +833.

On a consolidated basis, construction contracts carried forward at the end of FY2025 were 91,929 million yen, up 4,734 million yen or 5.4% from 87,195 million yen. Construction work performed was 139,323 million yen, up 17,130 million yen or 14.0% (RAITO KOGYO +14,045, O-NO-RYO (192), RAITO (U.S.) +2,861, FRU (Vietnam) +840). Total construction work on hand, defined in the materials as on-hand construction work at the beginning of the fiscal year plus orders received, was 229,659 million yen, up 22,268 million yen or 10.7%, and the completion rate rose 1.7 pt to 60.7%. On-hand construction work at the end of the fiscal year was 90,336 million yen, up 5,139 million yen or 6.0%; the materials note that differences between the beginning and ending balances are due to foreign currency translation adjustments.

Orders Received by Type of Work (Consolidated)

Growth in consolidated orders came mainly from foundations and ground improvement, which rose 10,310 million yen or 19.3% to 63,603 million yen. Slope stabilization and protection and environmental remediation both declined slightly.

Type of Work	FY2025	FY2024	FY2023	YoY Change (2024 to 2025)
Slope stabilization and protection	39,288	40,310	36,535	(1,022) / (2.5%)
Foundations and ground improvement	63,603	53,293	56,297	+10,310 / 19.3%
Repair and reinforcement	10,490	9,685	7,999	+805 / 8.3%
Environmental remediation	2,142	2,188	804	(46) / (2.1%)
Building construction	22,498	21,426	17,988	+1,072 / 5.0%
General civil engineering (including “other construction”)	5,738	5,006	6,943	+732 / 14.6%
Total	143,760	131,910	126,568	+11,850 / 9.0%

The slide breaks down the increase in foundations and ground improvement as RAITO KOGYO +5,579, RAITO (U.S.) +3,600 and FRU (Vietnam) +1,297, and the increase in building construction as RAITO KOGYO +1,147 and O-NO-RYO (280).

Non-consolidated Results and Orders by Ordering Party

On a non-consolidated basis, orders received rose 7,132 million yen or 6.4% to 119,222 million yen, net sales rose 13,951 million yen or 13.8% to 115,255 million yen, operating profit rose 3,765 million yen or 33.1% to 15,126 million yen, ordinary profit rose 3,846 million yen or 32.9% to 15,534 million yen, and profit attributable to owners of parent rose 1,845 million yen or 21.1% to 10,607 million yen. The non-consolidated gross profit margin improved 1.3 pt to 23.0%, above the FY2025 target of 22.1% shown on the slide. The slide annotates SG&A as +775 (personnel expenses +457, others +318). Total assets were 105,617 million yen and net assets 69,255 million yen, down 1,173 million yen or 1.7%, with the equity ratio down 5.6 pt to 65.6%. Non-consolidated construction contracts carried forward were 76,020 million yen, up 3,967 million yen or 5.5%, and construction work performed was 115,394 million yen, up 14,045 million yen or 13.9% (civil +9,996, building +4,048; by quarter 1Q +3,647, 2Q +3,843, 3Q +3,946, 4Q +2,608). The non-consolidated completion rate was 60.6%, up 1.9 pt.

In the non-consolidated breakdown by type of work, slope stabilization and protection fell 777 million yen or 2.1% to 35,473 million yen, which the slide attributes to a decrease in orders for maglev train construction and a reactionary decline from orders for large-scale private sector projects. Foundations and ground improvement rose 5,579 million yen or 12.8% to 49,340 million yen, driven by orders for large-scale projects related to energy facilities, railway and airport. Repair and reinforcement rose 902 million yen or 9.8% to 10,076 million yen as orders for bridge repair works from NEXCO increased.

By ordering party (non-consolidated), private-sector orders rose 13,829 million yen or 48.4% to 42,418 million yen, with the slide citing a nuclear fuel reprocessing facility (ground improvement) +5,480, Kansai Airport (ground improvement) +3,700 and building construction +1,146. Orders from NEXCO fell 5,998 million yen or 40.6% to 8,772 million yen, with Tokyo-Gaikan Expressway (ground improvement) (4,525) and Shin-Meishin Expressway (ground improvement) (2,129) cited. Orders from the Ministry of Land, Infrastructure, Transport and Tourism fell 1,963 million yen or 8.0% to 22,687 million yen, with Kobe Port Island (2,487) cited, while local government (construction) orders rose 2,573 million yen or 10.4% to 27,262 million yen on slope protection +1,486 and ground improvement +723.

Main Consolidated Subsidiaries

RAITO, INC. (U.S.) was the largest contributor to consolidated growth, with orders received up 3,600 million yen to 11,108 million yen and net sales up 3,745 million yen to 11,358 million yen. ONORYO CO., LTD. declined across all lines, with its gross profit margin down 5.5 pt to 9.9%. The assumed exchange rate shown for RAITO, INC. (U.S.) was $1 = ¥159.90 in FY2025 against $1 = ¥149.53 in FY2024.

Item	RAITO, INC. (U.S.) FY2025	RAITO, INC. (U.S.) FY2024	ONORYO CO., LTD. FY2025	ONORYO CO., LTD. FY2024	Other Construction Subsidiaries FY2025	Other Construction Subsidiaries FY2024
Orders received	11,108	7,508	5,522	5,799	7,972	7,009
Net sales	11,358	7,613	4,667	4,876	10,355	9,309
Gross profit	1,808	975	461	752	1,525	1,373
Gross profit margin	15.9%	12.8%	9.9%	15.4%	14.7%	14.8%
Operating profit	1,342	550	55	330	729	627
Ordinary profit	1,432	608	134	369	723	540
Profit attributable to owners of parent	1,416	597	115	233	470	333
Exchange rate	$1 = ¥159.90	$1 = ¥149.53	－	－	－	－

“Other Construction Subsidiaries” is defined in the materials as including domestic consolidated subsidiaries and FRU (a subsidiary in Vietnam).

FY2026 Forecast

For FY2026, covering April 1, 2026 to March 31, 2027, the company forecasts a small decline in consolidated net sales and profits, with the gross profit margin edging up 0.2 pt to 22.0%.

Item	FY2026 (Forecast)	FY2025 (Actual)	Change (2025 to 2026)
Net sales	138,000	139,216	(1,217) / (0.9%)
Gross profit	30,350	30,326	+24 / 0.1%
Gross profit margin	22.0%	21.8%	+0.2 pt
Operating profit	16,850	17,201	(351) / (2.0%)
Ordinary profit	17,300	17,712	(413) / (2.3%)
Profit attributable to owners of parent	11,800	12,487	(688) / (5.5%)

The forecast slide breaks the net sales change down into RAITO KOGYO +745, O-NO-RYO +333 and RAITO (U.S.) (3,858), and the operating profit change into RAITO KOGYO +173, O-NO-RYO +149 and RAITO (U.S.) (772).

Shareholder Returns

The presentation does not include a dividend or shareholder return section. This cannot be confirmed from the materials.

Note on the Materials

The presentation states that it has been translated from the Japanese original for reference purposes only, and that in the event of any discrepancy between the translated document and the Japanese original, the original shall prevail.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.