KK Obayashi-Gumi

Latest Results (19.12.2024):

Revenue Growth

KK Obayashi-Gumi reported consolidated net sales of 1,240.5 billion yen for the second quarter of FY2024, marking a 14.7% increase from the same period in the previous fiscal year. This growth was primarily driven by progress in large-scale projects in both domestic and overseas building construction businesses, as well as the consolidation of MWH in the overseas civil engineering sector.

Profitability Improvement

The company achieved an operating income of 45.4 billion yen, which represents a 47.5% increase compared to the previous year. This improvement in profitability was largely attributed to better performance in domestic construction projects. Additionally, the profit attributable to owners of the parent rose significantly by 85.3% to 55.1 billion yen, aided by the sale of cross-shareholdings.

Segment Performance

In the construction business segment, KK Obayashi-Gumi saw a substantial increase in orders received, totaling 1,582.9 billion yen, up by 69.7% from the previous year. The domestic building construction orders amounted to 671.4 billion yen, while overseas building construction orders were 282.7 billion yen. The domestic civil engineering orders were 239.0 billion yen, and overseas civil engineering orders reached 389.7 billion yen.

Financial Position

As of September 30, 2024, KK Obayashi-Gumi's total assets stood at 2,961.0 billion yen, a decrease of 1.9% from the end of the previous fiscal year. This decline was mainly due to reductions in cash and deposits and investment securities, following the sale of cross-shareholdings and a decrease in market value. Total liabilities also decreased by 2.2% to 1,784.3 billion yen.

Dividend Outlook

For the fiscal year ending March 31, 2025, KK Obayashi-Gumi has maintained its dividend forecast, with a total annual dividend of 80 yen per share. This includes an interim dividend of 40 yen and a year-end dividend of 40 yen, reflecting a consolidated dividend payout ratio of 65.9%.