DAI-DAN (1980): FY2025 Results Summary — Record Operating Profit as Construction Margins Surge

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DAI-DAN Co., Ltd. posted a record-high operating profit of 34,479 million yen for FY2025 (the period ended March 2026), up 49.7% year on year, as the gross profit margin of completed construction contracts improved to 21.9%. Net sales of completed construction contracts edged down 2.5% to 256,228 million yen, while net sales of construction contract orders received rose 25.5% to 353,102 million yen. Net sales of uncompleted construction contracts at the end of the period reached a record high of 355,273 million yen, up 37.5%, and ROE came to 22.5%.

Consolidated Results (Full-Year Actual)

The company describes the year as one in which it “achieved record-high profit due to improved profitability,” with the fiscal year-end backlog of uncompleted construction contracts also increasing following growth in orders received. Gross profit on completed construction contracts rose 14,734 million yen to 56,083 million yen, and the gross profit margin improved 6.1 points to 21.9%. The company attributes the margin gain to measures to reduce construction costs and to pass through prices; SG&A expenses increased due mainly to an increase in employee salaries accompanying base salary increases and to DX investments, including investment in raising efficiency in field operation and office work. In the operating profit bridge, an increase in the gross profit margin of completed construction contracts added 15,759 million yen, while a decrease in net sales of completed construction contracts subtracted 1,024 million yen and an increase in SG&A expenses subtracted 3,293 million yen.

Item (Millions of yen)	FY2024	FY2025	Increase (Decrease)	Change rate
Net sales of construction contract orders received	281,271	353,102	71,830	25.5%
Net sales of completed construction contracts	262,732	256,228	(6,503)	(2.5%)
Gross profit on completed construction contracts	41,349	56,083	14,734	–
Gross profit margin of completed construction contracts (%)	15.7%	21.9%	6.1p	–
Operating profit	23,037	34,479	11,441	49.7%
Operating profit margin (%)	8.8%	13.5%	4.7p	–
Ordinary profit	23,479	35,770	–	–
Net profit	17,443	26,772	–	–
Net sales of uncompleted construction contracts at end of period	258,400	355,273	96,873	37.5%
Return on equity (ROE)	17.4%	22.5%	–	–

On the balance sheet, total assets stood at 232.0 billion yen at the end of FY2025 against 215.3 billion yen a year earlier, with the equity capital ratio rising 6.5 points to 56.2%. Book value per share was 1,008.47 yen (831.82 yen a year earlier) and earnings per share was 207.33 yen (135.61 yen), both calculated assuming that the stock split had occurred at the beginning of the previous consolidated fiscal year. Operating cash flow was 58,437 million yen and investing cash flow was 415 million yen, giving free cash flow of 58,852 million yen; financing cash flow was negative 28,502 million yen, including 35,865 million yen of repayment of short-term borrowings. Cash and cash equivalents at the end of the period were 81,925 million yen.

Segment Results (by Construction Type and Business Area)

By construction type, electrical installations nearly doubled their orders received to 87,303 million yen, while air conditioning and plumbing installations rose to 265,798 million yen. Orders received for industrial facilities declined to 130,501 million yen, or 37.0% of total orders, which the company attributes to the impact of delays and cancellations in plans for large-scale industrial facility projects. Overseas orders received rose to 65,288 million yen, or 18.5% of the total, on large-scale facility orders in Singapore and the consolidation of Presico as a subsidiary. Orders received for renovations reached a record high of 133,407 million yen, and the ratio of direct orders rose 1.7 points to 51.5%.

Category	Metric (Millions of yen)	FY2024	FY2025
Air conditioning and plumbing installations	Orders received	236,457	265,798
Electrical installations	Orders received	44,814	87,303
Air conditioning and plumbing installations	Net sales (completed)	225,200	206,994
Electrical installations	Net sales (completed)	37,532	49,234
Industrial facilities	Orders received	162,802	130,501
Overseas operations	Orders received	39,870	65,288
Renovations	Orders received	111,000	133,407
Industrial facilities	Net sales (completed)	137,719	135,163
Overseas operations	Net sales (completed)	19,578	33,840
Renovations	Net sales (completed)	86,160	108,793

Within industrial facilities, orders received for data centers were 29,760 million yen, labs 16,402 million yen, factories 67,127 million yen, logistics facilities 1,933 million yen and small-scale work 15,277 million yen. On the completed-contract side, industrial facilities accounted for 52.8% of net sales of completed construction contracts, overseas operations 13.2% and renovations 42.5% (the figures include a certain amount of overlap, as calculation is done by construction type). By division, the International Division and HQ accounted for 18.5% of orders received, up from 14.2%.

FY2026 Forecast

For FY2026 (the period ending March 2027), the company forecasts orders received of 360,000 million yen (up 2.0%), net sales of completed construction contracts of 265,000 million yen (up 3.4%), operating profit of 36,000 million yen (up 4.4%), ordinary profit of 36,500 million yen (up 2.0%) and net profit attributable to owners of parent of 27,300 million yen (up 2.0%). Net sales of uncompleted construction contracts at the end of the period are forecast at 450,273 million yen, up 26.7%. The company states that orders received and net sales of completed construction contracts are expected to exceed the last fiscal year, which was at a record-high level, and that profit at each stage is also expected to increase, driven by higher net sales of completed construction contracts supported by a favorable order environment.

Item (Millions of yen)	FY2025 (period ended March 2026)	FY2026 forecast (period ending March 2027)	Increase (Decrease)	Change rate
Net sales of uncompleted construction contracts at beginning of period	258,400	355,273	96,873	37.5%
Net sales of construction contract orders received	353,102	360,000	6,898	2.0%
Net sales of uncompleted construction contracts at the end of period	355,273	450,273	95,000	26.7%
Net sales of completed construction contracts	256,228	265,000	8,772	3.4%
Gross profit on completed construction contracts	56,083	59,800	3,717	6.6%
Gross profit margin of completed construction contracts (%)	21.9%	22.6%	0.7p	–
Operating profit	34,479	36,000	1,521	4.4%
Operating profit margin (%)	13.5%	13.6%	0.1p	–
Ordinary profit	35,770	36,500	730	2.0%
Net profit attributable to owners of parent	26,772	27,300	528	2.0%
Return on equity (ROE)	22.5%	19.8%	-2.7p	–

Shareholder Returns

DAI-DAN states that, in addition to striving to build a sound financial structure, it is committed to returning profits to shareholders as its most important management policy. Starting from the period ended March 31, 2026, it has adopted a dividend policy of a dividend payout ratio of 40% or higher and a minimum DOE of 4.8% (+0.8 points compared to the previous announcement), as stated in the Notice Concerning Revision of the Performance Targets and Financial Strategy Indicators of the Mid-Term Management Plan “Refining Stage” announced on May 9, 2025. For FY2025 the total dividend was 11,066 million yen, the consolidated dividend ratio was 40.2% and consolidated DOE was 8.0%. Effective January 1, 2026, the company conducted a three-for-one stock split of its common stock. The forecast annual dividend for the period ending March 2027 is an ordinary dividend of 85 yen per common share.

Full-year dividend (Yen Sen)	Interim	End of period	Total
Period ended March 2025	52.00	111.00	163.00
Period ended March 2026 (Pre-split adjustment in parentheses)	82.00	56.00 (168.00)	– (250.00)
Period ending March 2027 (Forecast)	42.00	43.00	85.00

Mid-Term Management Plan Progress

FY2025 was the second year of the Mid-Term Management Plan “Refining Stage” (FY2024–FY2026). Against revised targets of 260.0 billion yen in consolidated net sales, 23.5 billion yen in consolidated operating profit and ROE of 12% or more, the company reported 256.2 billion yen, 34.4 billion yen and 22.5% respectively; consolidated net sales fell slightly short of the revised target while operating profit and ROE surpassed theirs. For the final year, the period ending March 2027, the revised targets are 270.0 billion yen in consolidated net sales, 24.0 billion yen in consolidated operating profit and ROE of 12% or more, against forecasts of 265.0 billion yen, 36.0 billion yen and 19.8%.

Capital allocation over the three-year plan has been revised upward: cash in and cash out are now each a three-year total of 81.0 billion yen versus 66.0 billion yen at the time of the May 2025 target revision, with shareholder returns raised to 28.0 billion yen (+5.0 billion yen), growth investment to 53.0 billion yen (+10.0 billion yen), operating cash flow to 74.0 billion yen (+14.0 billion yen) and sale of policy-owned shares to 7.0 billion yen (+1.0 billion yen). Policy-owned shares fell to 25,738 million yen and the ratio to consolidated net assets declined to 19.4%, achieving the plan’s target of less than 20% as of the period ended March 2026, with a sale price of 4,522 million yen recorded during the year. Consolidated employees at the end of the period numbered 2,568, and the engagement score reached 66.6 in FY2025, achieving the FY2026 target of 65.1 one year ahead of schedule.

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