HAZAMA ANDO CORPORATION (1719): FY2025 Results Summary — Higher Sales and Net Income as Orders Received Jump 24.8%

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

Note: HAZAMA ANDO labels the fiscal year ended March 31, 2026 as “FY3/26 (Fiscal 2025)” and the year ending March 31, 2027 as “FY3/27”; this article keeps the company’s own labels in the text and tables.

HAZAMA ANDO CORPORATION reported a year-on-year increase in revenue and earnings for FY3/26 (April 1, 2025 to March 31, 2026), which the company attributes to the progress of large-scale projects and improvements in project profitability. Consolidated net sales came to ¥439.6 billion, up 3.4% year on year, and profit attributable to owners of parent rose 12.5% to ¥29.7 billion, helped by extraordinary income posted in line with the reduction in strategic shareholdings. Consolidated operating profit declined 4.6% to ¥33.6 billion, although it still exceeded the initial forecast issued in May 2025. On a non-consolidated basis, orders received grew 24.8% to ¥533.5 billion.

Consolidated Results (Full-Year Actual)

Net sales, gross profit and profit attributable to owners of parent all increased year on year, while operating profit and ordinary profit declined as selling, general and administrative expenses rose 18.0%. Against the initial forecast announced in May 2025, operating profit came in +24.1% higher (initial forecast ¥27,100 million), ordinary profit +25.5% higher (initial forecast ¥26,500 million) and profit attributable to owners of parent +65.3% higher (initial forecast ¥18,000 million), while net sales were 0.3% below the ¥441,000 million initial forecast.

Item (Unit: Million yen)	FY3/26 (Result)	FY3/25 (Result)	YoY Change
Net Sales	439,615	425,160	+3.4%
Gross profit	63,959	60,962	+4.9%
[Gross profit margin]	[14.5%]	[14.3%]	[+0.2pt]
Selling, general and administrative expenses	30,341	25,718	+18.0%
Operating profit	33,618	35,243	(4.6%)
[Operating profit margin]	[7.6%]	[8.3%]	[(0.6pt)]
Ordinary profit	33,257	34,053	(2.3%)
Profit attributable to owners of parent	29,746	26,444	+12.5%
Annual dividend per share	¥80	¥70	+¥10

On the balance sheet, total assets increased ¥39,601 million to ¥411,575 million and total net assets increased ¥37,196 million to ¥209,380 million, lifting the equity ratio to 50.6% from 46.0%. Interest-bearing debt edged down to ¥27,515 million and the debt/equity ratio improved to 0.13 times from 0.16 times. Cash flows from operating activities were ¥28,432 million (¥11,176 million in FY3/25), cash flows from investing activities were ¥(6,363) million and cash flows from financing activities were ¥(13,770) million, leaving cash and cash equivalents at end of period at ¥64,591 million.

Segment Results (Non-consolidated by Business)

HAZAMA ANDO presents its business detail on a non-consolidated basis, split into the Civil Engineering Business and the Building Construction Business. Civil engineering orders received rose 10.5% and building construction orders received rose 31.0%, taking the combined year-end backlog to ¥688,190 million, up 23.3% year on year. Main projects among orders received in civil engineering included construction work of the main body of Yamatosaka dam (phase 1) for the Ministry of Land, Infrastructure, Transport and Tourism Shikoku Regional Development Bureau, and in building construction the construction work of DPL Musashi-Kosugi (tentative name) for Musashi-Kosugi Special Purpose Company.

Business (Non-consolidated)	Item (Unit: Million yen)	FY3/26	FY3/25	YoY Change
Civil Engineering	Orders Received	143,578	129,941	+10.5%
Civil Engineering	Net sales of completed construction contracts	141,127	131,261	+7.5%
Civil Engineering	Gross profit on completed construction contracts	22,870	19,724	+16.0%
Civil Engineering	[Construction gross profit margin]	[16.2%]	[15.0%]	[+1.2pt]
Civil Engineering	Year-end Backlog	273,971	271,480	+0.9%
Building Construction	Orders Received	390,005	297,672	+31.0%
Building Construction	Net sales of completed construction contracts	262,257	261,419	+0.3%
Building Construction	Gross profit on completed construction contracts	35,942	37,272	(3.6%)
Building Construction	[Construction gross profit margin]	[13.7%]	[14.3%]	[(0.6pt)]
Building Construction	Year-end Backlog	414,219	286,582	+44.5%
Total Civil Engineering and Building Construction	Orders Received	533,583	427,614	+24.8%
Total Civil Engineering and Building Construction	Net sales of completed construction contracts	403,384	392,680	+2.7%
Total Civil Engineering and Building Construction	Gross profit on completed construction contracts	58,813	56,996	+3.2%
Total Civil Engineering and Building Construction	[Construction gross profit margin]	[14.6%]	[14.5%]	[+0.1pt]
Total Civil Engineering and Building Construction	Year-end Backlog	688,190	558,062	+23.3%

Regarding construction work at the Tokai No.2 Power Plant, the company reiterates that, as announced in its May 14, 2024 disclosure, it expected additional costs of approximately 6.2 billion yen arising from repair and other expenses in relation to the incident that occurred during foundation work for the steel guard wall. HAZAMA ANDO continues to discuss the repair plan with the contractee and other concerned parties, and the review by the Nuclear Regulation Authority has progressed to the third stage out of four stages.

FY3/27 Forecast

For FY3/27 (April 1, 2026 to March 31, 2027), HAZAMA ANDO forecasts consolidated net sales of ¥490,000 million, up 11.5%, and operating profit of ¥34,000 million, up 1.1%. Profit attributable to owners of parent is forecast to fall 25.4% to ¥22,200 million. On a non-consolidated basis the company expects total orders received to decline 13.8% to ¥460,000 million while net sales of completed construction contracts rise 11.6% to ¥450,000 million. The company cites the need to monitor the impact of U.S. trade policies on investments in production facilities, and the impact of conditions in the Middle East, trends in material prices and labor costs as well as tightening of the labor market.

Item (Unit: Million yen)	FY3/26 (Result)	FY3/27 (Full-year forecast, May 2026)	YoY Change
[Consolidated] Net Sales	439,615	490,000	+11.5%
[Consolidated] Gross profit	63,959	67,700	+5.8%
[Consolidated] Operating profit	33,618	34,000	+1.1%
[Consolidated] Ordinary profit	33,257	33,600	+1.0%
[Consolidated] Profit attributable to owners of parent	29,746	22,200	(25.4%)
Annual dividend per share	¥80	¥84	+¥4
[Non-consolidated] Orders Received (Total)	533,583	460,000	(13.8%)
[Non-consolidated] Net sales of completed construction contracts (Total)	403,384	450,000	+11.6%
[Non-consolidated] Gross profit on completed construction contracts (Total)	58,813	61,600	+4.7%
[Non-consolidated] Year-end Backlog (Total)	688,190	698,190	+1.5%

Shareholder Returns

The annual dividend per share for FY3/26 was ¥80, up ¥10 from ¥70 in FY3/25, and the company forecasts ¥84 for FY3/27. Under the previous Medium-Term Management Plan 2025 the total return ratio was 43.1% against a target of 70% or more, but the three-year total payment amount exceeded ¥30.0 billion, achieving the target of ¥28.0 billion or more. Under Medium-Term Management Plan 2028 the company will pay dividends on a consistently stable basis, pay progressive dividends with a minimum annual dividend of ¥80 per share, and flexibly undertake the purchase of own shares; shareholder returns are set at ¥40.0 billion or more over the three years from FY3/27 to FY3/29.

Fiscal Year	Annual Dividend	Dividend Payment Amount	Amount of own shares purchased	Total (Amount of total return)
FY3/21	@¥30	¥5.7 billion	¥5.0 billion	¥10.7 billion
FY3/22	@¥40	¥6.4 billion	¥15.0 billion	¥21.4 billion
FY3/23	@¥40	¥6.6 billion	¥10.0 billion	¥16.6 billion
FY3/24	@¥60	¥7.8 billion	—	¥7.8 billion
FY3/25	@¥70	¥9.6 billion	—	¥9.6 billion
FY3/26	@¥80	¥12.8 billion	—	¥12.8 billion
FY3/27 and Beyond	@¥80 or more	—	—	—

Medium-Term Plan / Topics

Under the previous Medium-Term Management Plan 2025, FY3/26 consolidated results came in above the plan targets: net sales of ¥439.6 billion against a target of ¥438.2 billion, operating profit of ¥33.6 billion against ¥27.1 billion, ordinary profit of ¥33.2 billion against ¥26.5 billion, and profit attributable to owners of parent of ¥29.7 billion against ¥18.0 billion. ROE was 15.7% versus a target of 12% or more. Growth investment over the plan period amounted to ¥23.0 billion, falling short of the ¥40.0 billion plan. The employee engagement score was 79% against a target of 80% or more, and the number of female managers as of March 31, 2026 was 62.

The new Medium-Term Management Plan 2028 covers FY3/27 to FY3/29 under the theme “Work toward creating five values ―Continue to grow in appeal as an attractive company―”. By FY3/29 the company targets net sales of ¥550.0 billion, operating profit of ¥37.0 billion, consolidated ordinary profit of ¥36.5 billion (FY3/26: ¥33.2 billion) and ROE of 12% or more, together with an annual dividend per share of ¥80 or more on a progressive dividend basis and an engagement rating of A (FY3/26: BBB). Greenhouse gas emissions are targeted to fall 23% for Scope 1 and 2 and 14% for Scope 3 by FY3/29 versus the FY3/25 base year. Three-year cash allocation assumes operating cash flows of ¥76.0 billion or more, a ¥24.0 billion reduction in strategic shareholdings and ¥10.0 billion of debt on the cash-in side, funding growth investments of ¥50.0 billion or more, shareholder returns of ¥40.0 billion or more and human resources investment of ¥20.0 billion.

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.